Bank and Custody reconciliations

There are typically two kinds of reconciliation flows between a Custodian (or bank) and a PMS:

“Holdings” or “Positions”, referring to the sum of all transactions prior to a particular time

• Since transactions generally involve at least two items (i.e. “exchange A for B”, or “exchange Money for Shares”), a Holdings reconciliation can refer to either/or/all items involved.
• Since OACT only deals with the order flow, reliable and comprehensive positions and balances are not available to OACT. A case could be made that the sum of transactions in OACT (as stored in the internal reconciliation table, and available in the “History” section of the GUI) is equal to current positions and balances, but that is not necessarily true. For example, a PMS may have multiple order flows of which OACT is only one, or, may have applied transactions which are entirely outside of the OACT flow.

Transactions

• In the case of transactions, all items involved in the transaction are generally reconciled, i.e. Money AND Shares. Unit price and adjustments (fees, costs, taxes) are commonly also reconciled.
• If a requirement to reconcile OACT transactions exists, then Aggregations and Confirmations should be reconciled with the Marketplace/Channel, while Orders and Transactions are reconciled with the PMS. As a general principle, entities should be reconciled only with the counterparties/Systems with which they are in direct data-contact.

OACT Internal Reconciliation

The OACT system contains a database table which can be used for an Internal Reconciliation (also available in the GUI), containing summary information about each Aggregation that has passed through the system. The table contains relevant fields from each entity which can be used for comparison and reconciliation. OACT also contains an internal integrity report, ":report pipeline integrity breaches", though this is used by an oact-developer to analyze unexpected integrity issues.