December 11, 2012
We have all heard about cars having defects and the likes of Toyota having to do a so called “recall”. When you read those stories, your thoughts may be similar to mine: “Fair enough, there is a recognised problem, they have to pay to put it straight.” Banking has its own “product liability”, which can […]
December 3, 2012
Last week the FSA ruled on the UBS rogue trader case and fined the bank some £30 million (for detail see: http://www.fsa.gov.uk/static/pubs/final/ubs-ag.pdf). For those who work in a bank, I would suggest reading this in its entirety. Having read it, a few overarching points come to my mind. Failure to learn: Points 17 & 19 […]
November 30, 2012
BOBO. Back-Office to Back-Office reconciliation. This is the last of the three reconciliation areas. There are three types of rec that I would place in this group; d open trades, confirmations and positions. Both are essential and both are a vital, daily controls. Before we delver into any detail, a word of apology. This week’s […]
November 19, 2012
FOBO. Front-Office to Back-Office reconciliation. This is a vital, daily control that is designed to ensure that what the traders are trading off is the same as what is recorded in the firm’s processing systems and ledgers. There are various components to the reconciliation: Positions: a trader might just be long 1’000 shares of Apple. […]
November 12, 2012
There are not three R’s in reconciliation, that of course would cause a break (sic). What reading, ‘riting and ‘rithmetic, or math for our friends from across the pond, are to children, the three types of reconciliation are to operations professional. This week’s post is inspired both by a Goldman Sachs story and a Goldman […]