New York – September 9th, 2021
Family offices, hedge funds, institutions… Financial firms need to constantly analyze reports about their results and situations. Third parties like Prime Brokers, Custodians, or Fund Administrators must give them those reports with the maximum accuracy.
For this reason, it is extremely convenient to have a second opinion – a second report – validating data that may come from different sources. For instance, Bloomberg. Prices, positions, transactions, currency exchange rates, corporate actions… These are just examples of data in which an error can be critical and that can result in a modification of the entire portfolio.
At the time of managing the entire investment process of a given company, Investment Management Software providers must have access to all portfolio data. These providers are in charge of automating the entire process of buying and selling stock. In this case, Athena System and its software, Spark, provide the third parties with this data to check if both have the same results.
This is known as “Daily reconciliation”, which is the cross-check between the SaaS provider reports and Prime Broker, Administrators, and Custodians’ reports -the third parties-, looking for discrepancies. Whenever these discrepancies exist, it is important to check which side is wrong to fix the problem as soon as possible.
Reconciliation reports measure the stock quantity, stock prices, and Market Value. And, in the case of Spark, our report numbers must be the same as the third party’s ones. This will mean that everything is under control. As you can see, the reconciliation report is nothing more than a double check between both sides. One maintains the validity of the other and vice versa, helping each other.
What do we offer?
Investment firms usually need third companies when checking this data, which translates in more expenses. As mentioned before, Athena Systems sends the Daily reconciliation to the third parties, an End-of-Date file, so they can be aware of any mistake. In other words, we give them all the information they need to execute the review process themselves.
At the same time, the investment firm may not have the tools to check all the data, and therefore, they cannot carry out the revision. For these cases, we offer a premium service where we review and verify the data ourselves for them.
Want to see more? Get information about what Spark offers and its different modalities depending on what you are looking for. You can also contact us with any questions or concerns and we will give you an immediate proposal of what we can do for you.
About Athena Systems
Athena Systems is the provider of Athena Spark, the leading solution for investment decision support and automation. Athena provides managers and prime brokers with complete front office and back office functionality to ensure their trading and portfolio management operations are handled as efficiently as possible.
Used by 50+ firms globally, Athena uses state-of-the-art technology to provide Portfolio Analytics, Risk, P&L, Compliance, Order Management & Accounting while providing security, control and integration beyond compare. Athena has offices in New York, Boston, Madrid, Austin, Texas, Mexico, Ho Chi Minh City, Vietnam and Málaga, Spain