Inter Dealer Brokers

The Imperative to control reconciliations across multiple operations

Many Inter-Dealer Brokers have rapidly expanded their operations, often by merger and acquisition, into a multitude of different and emerging markets. This leaves them active not only in traditional Equities and FX, but an entire suite of complex Futures & Options, Credit and Interest derivatives, whilst also offering post-trade services.

Legacy platforms and technology struggle to keep pace with high transaction volumes, new instrument complexity and formats (e.g. FpML). The introduction of new controls is essential but is too often an after-thought, implemented on a case-by-case basis by silo based teams in either the Front, Middle or Back office. Incumbent in-house reconciliation solutions are often inflexible and costly, especially when attempting to on-board new reconciliations outside of the traditional ‘Nostro’ (Cash & Securities) area – OTCs is a good example. There is an ever increasing need to reconcile large sets of Intersystem or complex data, often within a day or two of receiving the data. Faced with the choice of either a lengthy on-boarding project onto an existing legacy reconciliation platform or a ‘quick fix’ onto a spreadsheet solution, many yield to the temptation and it is no surprise that spreadsheets are the dominant reconciliation “tool” globally.

Pressure on Boards from global regulatory authorities and shareholders alike to ‘guarantee’ the robustness of internal infrastructures is only increasing. With CTC, you can have confidence in a rapid deployment of high quality, high volume reconciliations, delivering a rapid ROI and enabling you to focus on other business priorities rather than lengthy and costly projects with drifting end dates.