Date: 28 November 2012

NAV and MV Reconciliation added to Watson Wheatley’s i-Recs Product

Watson Wheatley has extended its successful reconciliation tool i-Recs to handle NAV and market value reconciliation, offering a new level of control of all trading data to middle and back office operations. This is a natural and logical extension of the unique accounting framework of i-Recs and provides not only completeness of reconciliation covering trades, positions, balance, prices, exchange rates, but also the very powerful benefit of quantifying the value and influence of any break in commercial terms.

“The introduction of this functionality creates a brand new approach to asset reconciliation between disparate systems” says director and founder Duncan Wheatley. “It is logical to insist that a reconciliation between internal and external accounting systems holding different views of your funds and portfolios is handled by a system that speaks their language and is also an accounting system. This is what we have striven for with i-Recs, and with the introduction of NAV reconciliation we have reached our initial goal to provide a system that does just that.”

i-Recs uses the accounting logic initially to validate the continuity and integrity of data delivered; a prerequisite to successful reconciliation, and then throughout the subsequent matching, research and remedial processes to ensure the tight accounting relationship between the reconciliation data sets is maintained.

A clear benefit of this approach is the ability to measure the financial impact of all breaks whether a price, exchange rate, position or trade price on a margin traded instrument. This allows both the system and the users to prioritise remedial actions, provides a clear measure of operational risk to operations management and traders, and a pragmatic way of measuring quality of service provision.

Watson Wheatley has worked closely with its existing clients to deliver this functionality, and it is now fully deployed in a production environment.