On a daily basis, Octopus uses the platform to reconcile up to 10,000 or more cash transactions related to client money, matching customer information such as cash advances or stock balances from its portfolio system ‘Exact’ with bank statements from HSBC. The software produces an exception report which is used to resolve any unmatched items.
Octopus also performs cash reconciliations against its broker State Street. The platform matches its cash transactions against Exact and then custody cash transactions are matched to Exact. Items in Exact will only be reconciled once they have been matched to both State Street sources thus providing more robust cash positions for the fund manager.
This new system has helped Keith and his team to manage a complex process more effectively and efficiently. “It allowed us to move from a manual, two-way cash reconciliation with our broker to an automated three-way reconciliation which allows our fund managers to know precisely how much cash they have available for trading. We could never have done this before due to restraints on time and resourcing, and the complexity involved.”
Octopus uses Aurum’s front-office accounting tool to assist with forecasting to check that future trades have taken place. For example, the platform accrues management fees on a daily basis so the fund manager knows what the management fee payment will be over a defined period of time.