Electra Reconciliation — Tackling Your Complicated Recon Needs

November 22, 2017

We recently met with a large hedge fund who is looking to replace their reconciliation solution. Their problem is a common one where they have outgrown the capabilities of their current reconciliation platform. At the time when they purchased the tool, the reconciliation requirements were straightforward as they simply needed to reconcile long/short equities between themselves and their prime brokers.

Like many others in the alternative investment management space, our hedge fund prospect has grown their assets by capturing the attention of institutional investors and by expanding their investment strategy to include more esoteric asset classes. After taking in more institutional money, the hedge fund decided to enlist the services of a fund administrator who will help them demonstrate greater transparency. By opening up their trading strategy to include more asset classes, the hedge fund now deals with more internal systems and additional challenges related to reference data being stored across several silos.

Why would adding a fund administrator and additional asset classes cause a problem for their current reconciliation solution? For many of you who have gone down this path, the answer is obvious. Upon introducing an additional reconciliation source (fund administrator) and new internal systems meant to support the trading of esoteric assets, the prospect went from a simple one-to-one reconciliation requirement to needing true N-way reconciliation capabilities like those found in Electra Reconciliation. Their first goal is to perform a three-way reconciliation between their accounting system, prime brokers, and fund administrator. This eliminates configuring and managing two separate reconciliation processes (A to B and A to C) that are littered with redundancy. Their second goal is to reconcile security master information held in their data warehouse (golden record), OMS, accounting system, employee compliance and risk management systems. This assures staff that everyone is using the last security master information which removes unnecessary investigation work related to security identifiers.

Electra Reconciliation takes the pain out of identifying breaks when there are more than two systems. Its innovative, user configurable data dictionary allows our clients to tackle any type of reconciliation data. By eliminating the need to perform several one-to-one reconciliations, they remove redundancy in the reconciliation process, which lowers overall operational costs through a reduction in their cost per transaction. If you are a growing investment manager looking to move away from an inefficient reconciliation process where three or more data sources are being reconciled, we welcome the opportunity to assist you.

(Todd Sloan — Electra Reconciliation, Product Management)

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Electra Blog Posts

Electra Data — Electra Data and Custodian System Migrations

October 26, 2017

Day over day consistency in data delivery is an important part of choosing a data aggregation and delivery service.

Recently, a custodian from a major bank went through a system migration. The consequence of this migration was that many data points changed and clients using their platform were negatively affected because their feeds no longer matched their internal templates.

By contrast, customers of Electra Data were not affected by the change because our data aggregation is set up with a separate SFTP channel, which is not only secure but unchanging. Electra Data customers are unaffected by events that would normally cause downstream problems during upgrades and maintenance at custodians.

(Tiffany Bula — Electra Data, Account Manager)

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Electra Blog Posts

Electra Settlements — Settling Trades In Countries With Multiple Exchanges

September 19, 2017

A North America base advisor (237 billion AUM) focused on equity & fixed income trading didn’t have an effective way to differentiate between the Shanghai and Shenzen market in China. For each trade, they manually generated and fax specialty trade tickets.

Our help desk assisted the user in fully automating the selection of correct broker instructions in Electra Settlements for both the Shanghai and Shenzen activity based on the exchange code within each market. By incorporating an exchange code into the broker instruction selection logic, we were able to automatically differentiate which broker details to append to the trade instruction.

Once incorporated into their daily workflow, our client was able to free up and reallocate the 40 minutes it took to manually process their Chinese settlement activity to another operational task.

(Brian Prioleau, Manager of Settlement Solutions)

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Electra Blog Posts

Electra Billing — Invoice Narratives

September 7, 2017

Through the use of Invoice Narratives, Electra Billing provides account level options for displaying custom communications on invoices.  Invoice Narratives can be added, removed, or updated on demand as well.  Furthermore, clients utilizing the Electra Billing Watcher Service can automate the loading of narratives from other internal systems to provide a flexible and dynamic communication channel for outgoing invoices.

(Doug Fritz — Product Manager)

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Electra Blog Posts

Electra Reconciliation — Make Life Easier with Absolute Value Sorting

August 9, 2017

This is particularly useful when finding offsetting transactions, or when you want to line up the trade values that came with the wrong perspective.

There are two ways you can do it.

  • The easiest way is to left-click the column header while holding the [Alt] key.  This will toggle Abs() sort on this column.
  • You can also use a tickbox in the SmartSearch Column Setup (right-click column header and select Column Setup tab to get there):



Whichever way you set the Absolute sort, it will be saved when the SmartSearch is closed, just like the SmartSearch column layout. Please note that the Absolute sort feature is available in Electra Reconciliation Version 5.6.03 and above.

(Alexander Musayev, Senior Implementation Consultant)

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Electra Blog Posts

Reducing Risk in NAV Valuations

July 23, 2017

We recently demonstrated our award-winning Electra Reconciliation solution to a current Electra Data+ client to hear their thoughts on our product and how it compares to their current reconciliation process, which includes a commercial reconciliation product, Excel spreadsheets and Microsoft Access databases. During the Electra Reconciliation demonstration, we stopped to highlight our NAV reconciliation capabilities. Today, this client performs the NAV reconciliation in an Excel spreadsheet because their current reconciliation solution lacks support for this important month-end requirement. The client shared details about the many challenges they face when collecting NAV data from their custodians and using Excel to reconcile it. They are manually gathering and populating NAV data within multiple Excel spreadsheet tabs with additional data manipulation necessary to accommodate their hard-coded file layout and custom macros. The client understands that each time someone handles the data manually, they are introducing additional risk to an Excel-based process that is already fragile. With these risks in mind, our client has asked Electra to expand their use of the Electra Data+ service to not only include the cash, transactions and positions data being collected today, but also audited NAV data.
(Todd Sloan, Senior Vice President — Electra Reconciliation)

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Linedata And Electra Integrate Reconciliation And Fund Accounting Platforms

June 6, 2017

Electra Information Systems and Linedata have announced the integration of Electra Reconciliation and Linedata Mfact, Linedata’s global fund accounting solution.

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Fashion Compliance – Matching Mixed Prints, Zero Tolerance Persists

May 16, 2017

**FFC Special Report** …(FFC, aka Finance Fashion Control)

An Electra Reconciliation client called the help desk this week asking if it was OK to wear stripes with plaid.

We were quick to inform him that although the “fashion rules” are beginning to allow mixing prints this season (think: floral with a vintage paisley, for example), really bold prints like stripes, plaid, polka dots, checks and houndstooth etc., cannot be reconciled. Note: Not applicable to vacation days, Casual Fridays, nor to residents of Florida, Hawaii or Alaska.

(Steve Weinberg, aka in-house, sartorial savant at-large)

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Electra Data+ — Facilitating Complex Client Cost Reconciliations

May 8, 2017

Electra Data+ facilitates our clients’ cost reconciliations in a number of different ways. One of the bigger challenges occurs when the client favors a Position Report and the required cost basis data element is not included.

A recent example involves a client of both our Electra Data+ and Electra Reconciliation (eSTaARS) services. While they preferred the trade date based FTP Report that Electra receives for quantity/MV matching, this client requires cost basis as a data element whenever possible. The hitch being that this data is only available on a settlement dated .csv file received from the UBS PaineWebber website.

By using the eSTaARS combine feature and tweaking the mapping document of each file from our standard mapping, we were able to extract the cost basis data from the settlement file and combine it with the trade date based quantity/MV report and successfully matched it against their manager records. (Chris Koumou – Project Manager, Data Services)

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Electra Data+ — Real-time Cash Balance and Trade Files

April 20, 2017

It’s becoming an increasingly popular request from clients to start receiving Real-time Cash balance and trade files throughout the day.  Besides the ability to reconcile any previous days’ holdings, cash and transactions, there has been a push to stay on top of the current trading activity and cash movement throughout the day.  Not every custodian and brokerage house provides real-time file availability, though we’ve found the larger institutions do and more are following. (Andy Gnibus, Manager of Data Services)

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