Introduction

In the fast-paced investment world, updates are inevitable due to trading dynamics, errors, or changes in securities such as bank loans or corporate actions. These updates must be sent downstream after the initial reconciliation and reconciled themselves to ensure accuracy and consistency between different sets of financial records. The challenge lies in managing old records that become obsolete and ensuring that newer records are reconciled instead.

The Client

A top fund administration company needed to handle transaction updates efficiently to maintain accuracy in financial records. The client required a solution to detect and manage duplicate transactions, amendments, and cancellations effectively, ensuring that only relevant and accurate records were reconciled.

The Need

The challenges were multi-faceted:

• Detection: Identifying whether a transaction is a duplicate, amendment, or cancellation. Amendments are particularly complex, as they can involve economic details that need reconciliation or non-economic details that do not.
• Processing Logic: Determining how to handle and replace the original transaction based on its various reconciliation statuses. Previously matched items require more effort than unmatched ones.
• Audit Trail and Reporting: Providing a comprehensive audit trail and reporting to demonstrate how detections and updates occurred.

Selecting EZOPS ARO

EZOPS ARO was selected to address these challenges due to its robust capabilities in automating transaction lifecycle processing for duplicates, cancellations, and amendments. Key features of EZOPS ARO include

• Transaction Lifecycle Tracking: Creating keys to track the transaction lifecycle, configured to the client's needs.
• Detection Capabilities: Identifying duplicates, cancellations, and amendments, with the ability to handle both economic and non-economic amendments
• Processing Logic: Applying logic to process actions on the original version of the transaction, regardless of its status in prior reconciliations.

The Outcome

Implementing EZOPS ARO yielded significant results:

• Transparency: Provided a clear view of the transaction lifecycle.
• Efficiency: Reduced manual effort and time spent on reconciliation tasks.
• Accuracy: Minimized errors and discrepancies in the reconciliation process.
• Granularity: Enhanced accuracy in exchange fee calculations.
• Scalability: Enabled manual reconciliations to be integrated into a scalable and auditable platform.
• Advanced Functionality: Utilized advanced reconciliation features, including Auto-initiated Recons, Parent-Child Recons, Ops Dashboard, IPA, and Checklists.

Key Metrics

• Increased Efficiency: Significant reduction in reconciliation time.
• Reduced Operational Risk: Decrease in manual processes and related reconciliation errors.
• Improved Client Satisfaction: Enhanced satisfaction scores due to improved accuracy and efficiency.

Conclusion

This case study illustrates how EZOPS ARO handles duplicate, amended, and cancelled transactions, ensuring that financial records are accurate and up-to-date. The system streamlines reconciliation processes, enhances efficiency through automation, provides robust reporting and auditing capabilities, and supports compliance and risk management efforts.

We invite you to explore how EZOPS can help you meet or exceed your goals. Please contact us today to start the conversation.