Set Up Trade Recon for Warehouse Reconciliation

You can also indicate in the Trade Recon event panel to match by Event ID instead of Trade Ticket Number, using the following fields:

• Entity ID

• Security ID

• Event Type

• Event ID

Define the Out-of-Balance Tolerances

You must set up the tolerances for each field you want to reconcile using the warehouse to warehouse approach. The tolerances control the reconciliation of matched trades, that is, trade records sharing the same entity ID, security ID, event type, and trade ticket number. You can define field tolerances for the fields reconciled in your workflow using several approaches:

• Direct Approach. You can edit the trade-match-db trade match stream to configure specific tolerance amounts for each available reconciliation field. You must use the Message Center Editor to apply these edits.

• Indirect Approach. You can create tolerance rules using the Trade Recon console to apply to the cash recon event panels. You can then run the panels manually or from within the cash match stream.

The tolerance fields in the default warehouse to warehouse match stream include both low precision (2 decimal point precision) and high precision (12 decimal point precision) options.

Tolerances are applied as a +/- absolute amounts that classify the difference, if any, between matched trades as in balance, out of balance within tolerance, and out of balance.

Define Tolerance Rules

You can define tolerance rules to use with Run Match Now rules and recon event panels to apply custom tolerance checks to a segment of your data, prior to the default reconciliation. For example, you can use a tolerance rule to reconcile specific entities and securities types for different tolerances than the default Run Match Now rules and recon event panels.

To define a Trade Activity tolerance rule:

1. In the Trade Recon console, click Tolerance Rules.
   You see the Tolerance Rules pane with the current list of tolerance rules and the Tolerance Rule Detail pane with the list of details for the rule selected.

2. Right click New Rule.
   You see the Add New Rule dialog box.

3. In the Rule Name text box, enter the name of the new rule.

4. Specify whether you want the rule inactive or available for use.
   Options include:
   –  Is Active (Default). The rule is available for use.

5. Click OK to save the rule.
   You see the Tolerance Rules pane with the refreshed list of rules.

6. Select the rule from the list.

7. In the Tolerance Rule Details pane, select and right click Add Rule Condition.
   You see the New Rule Details dialog box.

8. Click the Data Field drop down and select the database and column values used to qualify the selection of exceptions, including database filter logic using Boolean operators.

9. Click the Field Name drop down and select the field to reconcile.

10. In the Value text box, enter the tolerance that you want to apply. For amount differences, enter the arithmetic value. For percentage differences, enter the percent value in one-hundredths.
    NOTE: You can enter values with 2-digit or 12-digit precision, depending on the setting of the Low/High Precision Switch (tag 7003) indicator in the default rule.

11. Click the Type drop down and select the type of tolerance check.
    Options include:
    –  Value (Default). Specifies that amount differences are tolerance checked.
    –  Percent. Specifies that percentage differences are tolerance checked.

12. Repeat Step 8 to Step 11 to define additional conditions, as required.

13. When complete, click OK.
    You see the new rule detail displayed in the Tolerance Rule Detail pane.

Configure the Trade Recon Environment

You must set the DataSetOption parameter in the MSGSERVICE.INI configuration file to indicate whether you are using the Depository Trust & Clearing (DTCC) reconciliation approach or the warehouse to warehouse reconciliation approach. You must also set message stream information for the record matching logic. The configuration file is located in the Eagle STAR Config Files/Configuration Files/msgcenter webserver folder and the Trade Recon parameters are located in the [DTC] section of the file.

To view/edit the file MSGSERVICE.INI configuration file:

1. From the Accounting Center window, click Reconciliation.

2. Click Admin and Administration.

3. Double click Engine Manager.
   You see the Engine Manager application window.

4. In the left pane, navigate to the folder path and filename with the MSGSERVICE.INI configuration file.

5. Open the file for editing.

6. Complete the options in the [DTC] section of the configuration file.

7. Click Save.
   You must exit and then re-open the Trade Recon console to acquire the new configuration options.

[DTC] Section Options

The following [DTC] options configure the behavior of the Trade Recon console:

• DataSetOption. Specifies the reconciliation approach for the Trade Recon console application.
  Options include:
  –  DataSetOption = 1. Indicates the standard DTCC confirm/affirm reconciliation approach.
  –  DataSetOption = 2. Indicates the Eagle data warehouse to warehouse comparison approach.

• MatchStreamWH. Specifies the match trade stream for trades stored on the Eagle data warehouse.

Define Entity Lists

You can define entity lists and composite entities to control the scope of Eagle Accounting, custodian, and data warehouse trades to reconcile. Entity lists are static lists containing PORT entity types. You can use the Entity List Manager to create entity lists and composite entities that control the position reconciliation process; however, you can not control the reconciliation process using dynamic lists.

To access the Entity List Manager tool:

1. From the Accounting Center window, click Reconciliation in the left navigation.

2. Click Admin.

3. Click Administration.

4. Double click Entity List Manager.
   You see the Entity List Manager tool.

Define Exception Assignment Rules

You can create exception assignment rules to simplify the workflow to automatically identify trade breaks based on entity or security attributes and then take the appropriate actions, such as, apply comments, categorize explained differences, and assign unexplained differences to team members for resolution. Once created, you can execute these rules from the Trade Recon console or within a message stream that follows the execution of the Run Match Now stream.

To define an exception assignment rule:

1. From the Trade Recon console, click Assignment Rules.
   You see the Assignment Rules pane with the current list of assignment rules and the Assignment Rule Detail pane with the list of details for the rule selected.

2. Right click New Rule.
   You see the Add New Rule dialog box.

3. In the Rule Name text box, enter the name of the new rule.

4. Click the Module drop down and select Trade as the type of reconciliation.

5. Specify whether you want the rule inactive or available for use.
   Options include:
   –  Is Active (Default). The rule is available for use.

6. Click OK to save the rule.
   You see the Assignment Rules window with the refreshed list of rules.

7. Select the rule from the list and in the Assignment Rule Details pane right click Add Rule Details.
   You see the Add Rule Details dialog box.

8. Specify whether you want the rule applied conditionally or applied to all records.
   Options include:
   –  Always (Default). Indicates that you want all records processed for assignment.
   –  Conditional. Indicates that you want to filter the records processed for assignment. When you select this option, you must click the Data Field drop down and select the database and column values used to qualify the selection of exceptions, including database filter logic using Boolean operators. You can select from the TRADES, SECURITY, and RULES database tables.

9. Specify whether you want the rule to directly assign exceptions or evaluate exceptions for explained and unexplained differences before assignment.
   Options include:
   –  Single Assignment (Default). Indicates that you want all breaks on a specific field assigned a specific break category, break sub category, and user/user group for handling. You can specify an expiration date for single assignments.
   –  Dependency Rule. Indicates that you want to break on a specific field after the evaluation of breaks on underlying fields. When you evaluate the underlying fields, the rule assigns each field a break category and subcategory, including a calculation field with the unexplained amount, if any, after considering the overall set of field differences.

10. For a single assignment election, click the Master Field drop down, select the field to inspect for breaks, and then assign a break category, break sub category, and user/user group for handling.

11. For the dependency rule election, click the plus sign to add a record to specify an underlying field for evaluation, commenting, and assignment. On each record, you must click the Field Name drop down and select an underlying field to evaluate and then specify the break category, break sub category, user/user group assigned for handling, and a free form comment. You can specify an expiration date for each field supporting the dependency rule.

12. Repeat Step 11 for additional underlying fields, as required to complete the dependency rule details.
    NOTE: The UNKNOWN record exists as a permanent underlying field and displays the net unexplained difference, if any, that you can assign for research and resolution.

13. When complete, click OK.