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Trade Approval & Asset Servicing Process (TAAS) Project

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  • #54735

    Harshal
    Guest

    I am doing Lean project in TAAS process where process starts from booking of trade and ends with signing off the reconciled cash recon breaks and custody recon breaks.
    500 hrs / month are spent in resolving the breaks which is waste. I would like to understand or need help on:
    1.While booking of trade correctly will help wil reduce / eliminate the further breaks that come in cash and custody reconciliation
    2. If merging of cash and custody reconciliation teams can be merged and acheive efficiency

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    #196903

    Harshal
    Guest

    Also if anybody can throw some light on how to reduce cost per trade

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    #196905

    Katie Barry
    Keymaster

    @harshal — Can you share your ideas? Why do you think you should take one approach over another? How would you answer your question?

    People are more likely to help if they see you’re putting forth a good-faith effort to try.

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    #196907

    Harshal
    Guest

    I agree Katie…
    1. My plan is to streamline the Trade booking process. If trade is booked correctly there may be less number breaks generating thus acheiving efficiency and improving Straight Through Processing(STP).
    2. On point no.2 Recon teams at one point do the same work at a point in process where the securities go out(custody recon) and cash Comes in to the account(Cash Recon). i am still exploring the feasibility of whether there is possibility of merging the Cash and custody recon team and use some capacity to be oarat of trade booking process.

    This is my plan :)

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    #196909

    ashish pathiyaparambath
    Guest

    Hi,

    Merging of cash and custody cannot be done as these are two seperate reconciliation as both the process providesa internal audit control. it has to be kept seperate so if one makes mistakes the other can act as a check.
    Regarding the accuracy, depends on how you receive the trade information,
    check if you receive an excel it can be automated.using a macro to upload the details on the system.
    i guess one only help if you can give what is format that you recieve the inforamtion vs what is the format that you work with. If it is excel you can do lot of automation.

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    #196915

    Marke
    Participant

    @harshal – are you referring to Nostro-Depot recon? If yes, then try & understand the root causes behind these breaks. Is it because the agent banks are not sending the statements on time or are they sending inaccurate statements? Are the internal ledgers being recorded accurately which is leading to the mis-match between statement balance & ledger balance leading to breaks? Are you using any auto-recon tools? Are the business rules in that tool updated from time to time? My suggestion is that you pick-up a representative sample of these breaks and slice them as per region, agent banks, transaction amount, etc… and see if you find some statistically significant differences across the different levels. If you do, solutions should become obvious..

    good luck, marke

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    #196982

    Harshal
    Guest

    Hi Marke,
    I have taken the same approach. As of now we are analysing the data. Apart from improving the the STP and reducing the volumes of breaks. i am unable to find any improvement. The reduction in breaks would be a huge benefit though.

    Harshal

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    #197032

    Satya Yudha
    Participant

    Ashish enlight me please, in my opinion as long as the rule of four eyes principle implemented, you may merge this two
    @harshal, about reducing cost per trx are you have separate the fixed and variable cost?
    automate repetitive manual process, or centralize process would be beneficial

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    #197033

    Harshal
    Guest

    Hi Satya,

    Thanks for the input. Can you please share me your email id or contact number on [email protected] to discuss the same thing in detail.

    I have discussed the issue of merging the Recon teams with numerous people and everybody was of the opinion that we cannot do it. I personally think that it is possible but unable to freeze on the same.

    It would be really good if you can share the contact details.

    Regards,
    Harshal

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    #197034

    Satya Yudha
    Participant

    you could reach me at [email protected]
    IMO it is better if you share the issues in this thread, since we have experts here and hopefully gravitate others to enrich the discussion ^_^

    yudha

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    #197035

    Harshal
    Guest

    Thats fine Satya.

    I was actually trying to reduce the breaks(Cash & Custody) however there would be some breaks that the system / process will have to live with permanently. Not all breaks can be eliminated. In the current scenario we spend 685 hrs/months working(research) and resolving the breaks. Hence thought of how it can be merged because of the same transaction going through cash break and custody breaks as well thus to acheive efficiency and reduce manual effort.

    The root causes of such breaks that are generated are mainly due to system issues and specific depts not sending the info/statements on time.

    Do let me know if you have any inputs on the above.

    Thanks
    Harshal

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