Monthly Archives: November 2012

30 NovThe 3rd of the 3 R’s of Reconciliations.

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 […]

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19 NovThe 2nd of the 3 R’s of Reconciliations

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. […]

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12 NovThe 3 R’s of Reconciliations

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 […]

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05 Nov3 Things to know about mistakes

Mistakes happen. Things go wrong. It is how you handle them that matters. This week’s observations follow on from last week’s post on rogue traders. Often, people will do silly things to hide mistakes and losses. A really famous case occurred at the Japanese house, Daiwa, in the nineties. A trader, Toshihide Iguchi, covered up […]

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