Glossary · Trading and execution
Reconciliation
Reconciliation is the daily process of confirming that an advisor's records of positions, cash and transactions match the custodian's.
It is the foundation everything else rests on. Performance, billing and reporting are all computed from the book, so a book that disagrees with the custodian produces numbers that are confidently wrong.
Reconciliation breaks most often on corporate actions, transfers in kind, and any security whose identifier changed.
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