Portfolio reconciliation

Portfolio reconciliation is a central aspect of collateral management. DerivSource's Julia Schieffer investigates how buy-side firms are improving this operational area through new technology in response to a changing market environment.

TriOptima today announced that the "Big Six" Canadian banks including Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, Scotiabank, and The Toronto-Dominion Bank have joined triResolve, the leading counterparty exposure management service for OTC derivatives including portfolio reconciliation, margin call management and dispute resolution.

Advances Understanding and Promotes Better Collateral Management Practices

The International Swaps and Derivatives Association, Inc. (ISDA) today announced the publication of its “Feasibility Study: Extending Collateralized Portfolio Reconciliations”. This publication is intended to enhance understanding of the achievability for wider adoption of portfolio reconciliation discipline across the industry.

The Collateral Framework Group, an adhoc group of industry professionals, recognized the opportunity and need to automate portfolio reconciliation for risk management purposes long before this function was branded as problematic. TriOptima, an original participant in this industry group, explains the history behind this group and how its initiatives reduce risk market-wide even during these tumultuous market conditions.

TriOptima today announced that CQS, a global alternative asset manager with $6.1 billion in assets under management, has joined triResolve, the leading portfolio reconciliation service for OTC derivatives. CQS is one of many buy-side firms that have turned to triResolve to enhance their risk management and trade control capabilities.

TriOptima announced today that it estimates that its triResolve portfolio reconciliation service is regularly reconciling 40 percent of all OTC derivative transactions globally.

Currently 7 million live trades (double counted) are reconciled regularly on triResolve.  This is up from 4 million trades at the end of 2007, or a 75% increase in reconciled trades.  This represents trades from more than 200 institutions, including 13 of the Fed 18 banks.