Insights
3forge Reconciliations Deep-Dive
With the 3forge low-code development platform, highly scalable real-time reconciliations can be developed in days.
With the 3forge low-code development platform, highly scalable real-time reconciliations can be developed in days.
Real-time reconciliations are a critical tool for wall street firms and serve as the single most popular solution implemented by 3forge clients. From front office algorithmic trading and risk management activities to back office settlement and regulatory reporting activities, real-time reconciliations serve as an important control, mitigating operational risk and ensuring regulatory compliance. And with the 3forge low-code development platform, highly scalable real-time reconciliations can be developed in days.
In algorithmic trading, the reconciliations serve to verify the integrity of the trading gateways and confirm the comprehensiveness of automated market and credit risk exposure controls that protect the firms and market participants from runaway trading. As orders are executed through an algorithmic platform, independent feeds of order and trade data are compared against the trading platform's logs to ensure all messages are received and processed correctly. In the case messages are missed, a platform risks submitting erroneous orders that result in overfills, depletion of liquidity, severe price movements, etc. 3forge's ability to connect to multiple streaming FIX-based data sources out of the box, makes it an ideal solution for algorithmic trading.
Reconciliations ensure the integrity of trade-booking processes that feed into risk management systems. Having an incomplete or delayed view of risk in a trading book or portfolio can lead to poorly informed decision-making and significant losses related to sudden market movements. 3forge's extensible connectivity framework allows it to subscribe to live market data feeds, trade-booking feeds, and position management systems. With its powerful event-processing framework, 3forge can not only find the differences, but also summarize them in terms of value.
Back office systems for settlement and regulatory reporting serve as a backbone to any financial firm and must reliably process large volumes of trading data. Failing to feed trade messaging into these systems can negatively impact clients, delay or violate settlement terms, and produce inaccurate or delayed reporting for mandated, time-sensitive scenarios like TRACE. 3forge's real-time database can temporarily store many versions of a trade as it travels front-to-back, allowing for breaks and bottlenecks to be detected.
As trading data moves from front-to-back, 3forge can provide end-to-end reconciliation solutions that allow firms to immediately react and correct issues that may otherwise lead to regulatory violations, financial losses, or client impact. 3forge's powerful database and connectivity framework allow it to connect across many disparate sources of data. With its intuitive scripting language and event-processing engine, 3forge can execute business logic within its real-time database, allowing alerts to be generated immediately at scale. Finally, 3forge's powerful design studio and interface development tools make it easy to generate reports, email alerts, and administrative dashboards that convey the health of the feeds to staff in real-time.