5

Reduce recurring reconciliation breaks.

4

Understand corrective and preventive actions.

3

Identify common root causes.

2

Investigate reconciliation breaks.

1

Explain the purpose of RCA.

Finding the reason for a reconciliation break is a systematic process. Instead of making assumptions, a reconciliation analyst follows a series of steps to identify the exact cause of the mismatch.

1. Isolate the break

The first step is to identify the exact trade, cash transaction, or position where the mismatch has occurred. Instead of checking the entire account, the analyst focuses only on the specific entry that is showing a difference.

2. Gather supporting documents

Next, the analyst collects all the documents related to that transaction. These may include the trade ticket, contract note, Standing Settlement Instruction (SSI), corporate action notice, and system logs. These documents help verify what was supposed to happen and what was actually recorded.

3. Compare timelines

The analyst then compares the date and time when the transaction was recorded by both parties, such as the internal system and the custodian or bank. In many cases, the records are different simply because one side recorded the transaction earlier than the other. These are called timing differences and often get corrected automatically.

5. Classify the cause

After finding the reason for the mismatch, the analyst places the break into the correct root-cause category, such as a timing difference, missing transaction, incorrect settlement instruction, pricing difference, or operational error. Once the cause is identified, the appropriate corrective action can be taken to resolve the break.

4. Trace the transaction lifecycle

The analyst follows the complete journey of the trade or cash movement, starting from the order stage and continuing through execution, confirmation, and settlement. This helps identify the exact stage where the two records started to differ.

Common root causes

1. Timing Differences

Sometimes both parties record the same transaction on different dates. For example, the internal records may record the trade on the trade date, while the counterparty or bank records it on the settlement date. This creates a temporary break, which usually gets resolved automatically.

5

Build strong branding

4

Use different marketing channels

3

Target the right audience

2

Create and communicate value

1

Understand customer needs

A. Facebook

B. Instagram

C. LinkedIn

D. Snapchat

A. Facebook

B. Instagram

C. LinkedIn

D. Snapchat