When two parties do OTC (over-the-counter) trading they need to do reconciliation of their portfolios to acknowledge and recognize that both are at the same page. Disputes shall be resolved as soon as possible. Doing reconciliation regularly and frequently is not only good practice but is also a mandate from regulators.
Few trades may be reconciled by one individual manually using excel sheets. However, to be able to reconcile thousands of trades by one individual you need a pretty damn good tool. I’ve seen a couple of reconciliation tools but nothing like TriOptima’s TriResolve. I’m a big fan of TriOptima’s tool because of the ease and accuracy we get by using their tools.
To be able to use TriResolve, at least one party has to subscribe to its services. The other party can be a “receiving” counterparty who will not do reconciliation but will wait for reconciliation (recon) done by first party and if issues are found in recon results then will raise it with first party for resolution.
However, I highly recommend all OTC trading organizations to subscribe to TriResolve. However, sometimes organizations are not aware of the benefits or cannot afford the subscription fees. There is good news for them too given their counterparty is subscribed to TriOptima.
For reconciliation to happen on TriResolve both parties’ portfolio has to be uploaded. There are three ways, to upload the portfolio:
- TriResolve subscribers upload their portfolio directly to TriResolve.
- TriResolve non-subscriber either upload their portfolio to TriResolve’s free of charge tool called QuickPort; or
- TriResolve non-subscriber send portfolio over email to subscriber counterparty and the counterparty will upload portfolio on non-subscriber’s behalf.
Non-subscribers will not be able to enjoy all services of TriResolve but by using TriResolve QuickPort they will be able to use few basic but awesome facilities of TriResolve. There isn’t any benefit in third point, it’s a kind of double work and operation inefficiency that could be avoided.
Still there are so many Parties who send portfolio over email to counterparty. I think, 99% of them are not aware of QuickPort and rest 1% are hesitating for a change. If you have ever worked in corporate environment, you would know that changing legacy system, no matter how old fashioned they are, is not feasible. Refer http://www.trioptima.com/services/triResolve/triResolve-QuickPort.html for benefits.
I hope this article gave you some insights from an analyst perspective.
Disclaimer: I’m analyst, an end user of TriResolve, so I may be not aware of all the services and facilities of TriOptima. You should visit http://www.trioptima.com/services/triResolve/ for more authentic and accurate information. This article is my personal view about TriOptima and some part of the article may require correction.