The client, an established Mayfair based hedge fund with over $20bn AUM, needed to reconcile large and increasing volumes of exchange traded derivative trades on a daily basis with its clearers to ensure trading data was accurate, charges were being levied in accordance with agreed commission schedules, and collateral requirements were being correctly applied.
Watson Wheatley’s iRecs was identified as the best fit for the company due to its ability to automate derivative trade matching and fully account for all mark to market differences. iRecs was required to interface with the firm’s portfolio accounting system, Linedata’s Global Hedge, and reconcile this against data from ten different clearers who provided data in a range of file shapes and formats.
Data import needed to be completely automated; clearer files were delivered via encrypted FTP on T+1. Volumes ranged between 3,000 and 10,000 trades per day across 60 funds/portfolios containing over 1,000 margin accounts.