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Quantitative Finance · Glossary

What is Reconciliation, reconciliation break?

Also known as: reconciliation · reconciliation break

Definition 22.4 Research, Data and Risk Platforms · Chapter 22 — Post-Trade Systems

Reconciliation is the periodic comparison of two records that should agree — the firm’s positions or cash against a custodian’s or prime broker’s statement, the firm’s trades against a clearing broker’s — item by item. A reconciliation break is an item on which they differ: present on one side only, or present on both with different values.

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