Acuiti and HelloZero publish the results of their study into derivatives reconciliations in a new report, Derivatives Reconciliations: “Good enough” is no longer good enough.
This study surveyed or interviewed over 60 sell-side firms operational in the derivatives market, and provides a deep-dive analysis of the latest trends regarding derivatives reconciliations software, a benchmark of levels of automation and efficiency across different company types and exploration of the impact that investment in automation has on efficiency.
The key findings included:
- Investment in reconciliation software is on the rise, driven by increased regulatory oversight and weaknesses exposed during periods of volatility during 2020
- A lack of data standardisation caused by multiple data symbology standards is the biggest barrier to efficient reconciliation processes
- 81% of tier 1 banks use spreadsheets as part of the core reconciliation process compared with 19% of brokers and non-bank FCMs
- 67% of brokers and non-bank FCMs had upgraded their reconciliation software over the past three years