Broadridge Financial Solutions has launched ProActive, described as a significant evolution in its leading reconciliation and operational control solution, to enable the combined reconciliation of related cash and stock positions, together with all underlying transactions, in a single unified, optimised process.
It said that the introduction of the new capability enables firms to benefit from incremental levels of operational efficiency, while further mitigating their cost and risk exposure.
Traditionally, many financial organisations have based their reconciliations on separate matching processes for cash and stock, even when they relate to the same underlying transactions. While this approach has aided the operational efficiency for each process, it has been necessary to provide a separate link or manual check between the cash and stock in order to trace the impact of a failed match in one area upon the other. As a result, this causes exposure due to the time and effort required to track and resolve the issue.
Broadridge added that the new ProActive enhancement gives clients the choice of continuing with separate reconciliations for cash and stock, or adopting its new combined approach whereby cash and stock transactions are matched in a single operation which is linked to all related cash balances and stock positions. By adopting the new approach, firms will be able to identify the root cause of exceptions at greater speed, with a comprehensive, intuitive view of all linked components relating to both the cash and stock. This, in turn, minimises the risks associated with matching delays, such as funding, reporting or settlement-related exposures.
“Our commitment to continued, substantial R&D investments enables us to support firms seeking to gain tangible cost- and risk-related benefits through this innovative yet logical next step in the advancement of reconciliations and operational control,” said Robert Harris, product manager, Broadridge. “The inherent business-focused, flexible design of the ProActive solution enables us to incorporate and deliver this important market enhancement without requiring our clients to undergo a major disruptive change or work-around.”
However, a London summit on the industry’s introduction of the technology cautions that testing and acceptance are still at an early stage and firms should proceed with caution.
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