November 17, 2023 | John Cushing, Director, Service Delivery Manager
An investment manager’s ability to trade on accounts throughout the day is critical to generating returns, and operations should never be an impediment to making an important trade. This is the main benefit of our Dynamic IBOR approach, which enables managers to trade with confidence.
An influx of new investment products combined with an increasingly complex investment management ecosystem has led to increased complexity for investment operations teams. The growing number of recordkeeping parties, including custodians, sponsors, and fund accountants are tasked with providing a growing amount of information in a shorter timeframe. With reconciliation becoming a bigger focus for investment operations teams, it is important to have a full understanding of Archer’s “Dynamic IBOR” approach.
KEY ELEMENTS OF ARCHER’S IBOR
- Trade Flow: The manager's completed trades create positions or holdings for their portfolios.
- The Reconciliation Process: Information from custodians, including positions, transactions, trades, and tax lots (when available from the custodian) is sent via automated feeds which are used to reconcile against our IBOR.
- Corporate Actions: Corporate actions such as mergers, splits, spinoffs are pulled in from a reference data provider and applied to the positions.
UNDERSTANDING DYNAMIC IBOR
Archer provides the manager with an IBOR at the start of each trading day, and then incorporates the golden source of information for cash and positions while simultaneously resolving custodian/CBOR issues. In other words, the account is stamped reconciled before discrepancies are resolved so that trading teams can move ahead efficiently.
RECONCILIATION SUPPORTS DYNAMIC IBOR
Because many applications cannot facilitate trade booking in a timely manner, trading teams believe that reconciliation is a prerequisite for an IBOR. This is not a limitation with Archer, because we use a dynamic IBOR and we have the golden source for trade flow and corporate actions. This means that, instead of a prerequisite, reconciliation is an exercise of following up to ensure that the custodian has accurate holdings and trades until our records match the custodian’s.
At Archer, an account is considered fully reconciled once all the issues are identified and we know that our system is correct. The process is supported by Archer’s integrated connections to trade partners, custodians, and fund accountants, resulting in faster transaction bookings and match resolutions.
ARCHER'S DAILY RECONCILIATION PROCESS
BEGIN THE TRADING DAY WITH CONFIDENCE
Archer’s unique Dynamic IBOR enables asset management teams to trade earlier in the day with the knowledge that they have the most accurate and complete investment book of record, all backed by Archer’s team of retail and institutional reconciliation experts.
John Cushing
Director, Service Delivery Manager
John Cushing is Director, Service Delivery Manager, overseeing BNY Archer’s Reconciliations, Corporate Actions, Security Master and Pricing, and Performance teams, servicing both Institutional and Retail SMA clients. With over 20 years of industry experience, he’s held roles at PFPC, Inc. (now Bank of New York Mellon) and J.P. Morgan Asset Management, where he held various leadership positions and managed multiple operational functions, including Reconciliations, Client Reporting, and Investment Accounting.
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