Reconciliations

Compliance Reconciliation

Reconcile your transaction data for the entire regulatory submission process
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Reconciliation just like the regulator wants 

Regulators require investment firms to conduct systematic reviews of their regulatory reporting submissions. With the ever increasing data quality checks conducted by regulators, it is important that reporting firms have in place the necessary tools and processes to verify reporting quality on a regular and ongoing basis. Cappitech offers clients several reconciliation tools to choose from to ensure the accuracy and completeness of their data.

Client vs Cappitech Reconciliation

This reconciliation process is designed to identify inaccurate and incomplete transaction reporting data between your trading records and the Cappitech platform. Using our platform, you can easily see all your transactions submitted and view the eligibility and reportability status for each transaction. The reconciliation report is processed daily and is available on the Cappitech dashboard and via a sFTP.

End of Day Trade Repository Reconcilation

The  End of Day (EOD) Trade Repository (TR) Reconciliation will enable you to verify that the open positions at the TR are indeed the expected open positions based on your activity, allowing you to rectify reporting in case this is not aligned.

With Cappitech’s EOD reconciliation, you will be able to view:

  • Positions open on the Cappitech solution but missing at the TR
  • Positions open at the TR but missing on the Cappitech solution
  • Positions found on both platforms, but which have data discrepancies between them (meaning the latest data reflected at the TR does not align with the latest data reflected in the Cappitech solution)
  • Positions that are fully aligned between both platforms

MiFID NCA report reconciliation

The Cappitech solution allows you to compare trade data to transaction reports with line-by-line details of submissions to trades. The final XML reports received by the FCA are reconciled to MiFIR submissions and ensure you comply with best practices of monitoring transaction reporting.

Customized Reconciliation

For those who need a bespoke reconciliation process, Cappitech is able to offer a field by field comparison (up to 10 economic field) between the client’s back office open positions and the TR open positions. This is ideal for clients who’s reporting is done by another party and requires completeness and accuracy verification of the 3rd party reporting compared to their back office open position.

Ensure your transaction reporting is complete
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Benefits

Various options available based on the type of reconcilation you need
Quickly and easily identify breaks, gaps or inaccuracies in the data
Available across all regulatory regimes (CFTC, SEC, Canada, EMIR, SFTR, MiFID II, MAS, ASIC, HKMA)
Ability to fix errors in the Cappitech system directly or resubmit via the source
Around the clock support for questions on resubmissions, breaks or any backloading
Available as reports or accessed via the dashboard
Access to Cappitech professional services teams to assist with remediation work

How Our Solution Works

1
Seamless
No additional integrations needed for reporting clients
2
MDP setup
Download of NCA XML reports and upload to Cappitech
3
Validate
NCA data and front-end trades compared to submissions
4
Report
Daily creation of easy to review CSV files by reporting regulation

See it in action

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What is regulatory reconciliation?

Regulatory reconciliation is the process of comparing front office transactions to those submitted to regulators and trade repositories under transaction reporting for accuracy and completeness of reporting. The review should include checks that all trades that are under scope are in fact reported, transactions out of scope aren’t being reported and that data received by regulators matches sent submissions.

 

Is trade/transaction reconciliation a requirement by the regulator?

Under MIFID II regulation, there is a requirement within  RTS 22 Article 15 Clause 3: “Investment firms shall have arrangements in place to ensure that their transaction reports are complete and accurate. These arrangements shall include testing of their reporting process and regular reconciliation of their front-office trading records against data samples provided to them by their competent authorities to that effect.”

Other forms of transaction reporting regulation also include within their legislation requirements for firms to have in place processes for maintaining accuracy and timeliness of reports.

 

Why do we need to reconcile with the regulator’s data?

While comparing the number of transactions sent vs. the number of transaction accepted by the regulator, you can identify many reporting issues including identifying rejections or discovering records being missed.

 

What is a three-way reconciliation?

Three way reconciliation is a comparison between front office data, information sent to an ARM or service provider and reports collected by a trade repository or regulator.

Learn More

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