Reconciling Orion and your Custodian: Part 1 Introduction

There are few things more important to an Advisor than their client’s overall experience with them, including customer support and whether the client needs are being anticipated and met. Reporting and on-line experience is important to clients, as is whether the data is timely, complete and correct. A main component to achieving the client trust in the information being presented is the reconciliation process. This process is the last line of defense to detect and correct trade errors, missing corporate actions, or position discrepancies.

In this series, I will describe the reconciliation process that I created for reconciling a custodians positions and transactions with Orion’s positions and transactions. The principles I discuss in this post are principles that can be extrapolated for any recon process. The question is why reconcile at all if Orion Advisors or another third party is reconciling that data they load. Even though Orion does an excellent job with reconciliation, the Advisor is ultimately responsible for providing accurate and timely data to their clients. There are many causes of position and transaction exceptions, including matters specific to the Advisor, such as pricing or workflow. It is likely those exception would not be detected by and outside firm doing your reconciliation.

The name of the game for a reconciliation process is automation with as little human intervention as possible, which allows you to concentrate on resolving exceptions. Automation also enables the recon process to run more frequently. Not only should reconciliation be done daily, but there are also times where Orion’s daily load is running late, so the reconciliation may need to be run multiple times.

As mentioned above not only are Advisor’s responsible for the accuracy of the data, they are responsible for the timeliness of the data, as well. If you utilize the Orion’s API for a custom portal, dashboards, or reports, there are API calls available that include “as of date” as an argument including

  • Transactions
    GET Portfolio/Transactions/Verbose
  • Holdings
    POST Reporting/Activity/Holdings
  • Performance
    POST Reporting/Performance/DrillDownSummary

Additional information on the Orion API endpoints can be found here.

The desired “as of date” can be stored to control what data is shown to your clients. This gives your operation staff the flexibility of releasing the most accurate data available at the time. For more granularity, you can store the account number and “as of date”, which allows you to control what data is shown by account. For example, if you have a custom portal, you can release each account as it is reconciled giving your clients timely and accurate information.

In the next two posts of the series, I will be outlining how you can create an automated process to reconcile holdings and transactions. This is one method that can be used but there are others. The process outlined in this post is straightforward, but it can be used as a building block for a more robust process. The processes outline in these posts were built using c# and ASP.NET WEB API as a console program.

In Part 2, we will discuss our methods to reconcile a custodians holdings with the holdings in Orion including:

  • share quantity
  • amount
  • price
  • cash balance

And in part 3, transaction reconciliation between a custodian and Orion will be examined.

I hope you find this series informative.

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