“Contract Comparison is a key control for mitigating risk and maximising
ISLA Statement of Market Guidance: Contract Compare
Why Choose Pirum?
Pirum offer unparalleled flexibility to accommodate differences in booking practices. Special rules can be set-up to ensure clean matching of stock loans versus repos, cash trades versus cash pool trades and equity financing transactions.
Pirum has a straightforward implementation process. We take data in your preferred format using your choice of transmission method and do the work required to prepare your data for reconciliation.
Pirum is widely regarded as being the industry’s service provider of choice. Don’t just take our word for it – speak to your counterparties to hear their views first hand.
Investment banks / Asset Managers / Pension Funds / Insurance Companies / Agent Lenders
Pirum’s Core Service provides market participants with automated comparisons of the key financial details of their open contracts and monthly billing. Any differences are highlighted automatically, enabling users to immediately focus on prioritised exceptions and to quickly resolve any issues.
Contract Compare – Reconciles close-of-business borrows, loans, repos and cash and non-cash collateral for both bilateral and custody trades.
Billing Compare – Automatically highlights any differences at a detailed transaction / day level in the monthly billing statements that would otherwise delay payment of fees and rebates.
Billing Delivery – Enables fast and efficient electronic distribution of billing statements to all counterparties, whether or not they are Pirum subscribers.
Custody – A contract compare service designed specifically for third party lenders to reconcile with their custodians.
The timely resolution of breaks is essential to ensure that both parties maintain accurate books and records. This significantly improves the processing efficiency of all downstream processes such as mark-to-market, returns and monthly billing.
All parties provide file extracts as at close-of-business each day or end-of-month as appropriate. A comparison is automatically initiated and breaks at the detailed level are highlighted and shown to users on Pirum’s secure web site.
The Contract Compare service reconciles stock loan and repo style trades together with any associated collateral pledges (i.e. cash, non-cash and cash pool collateral).
Transactions are compared throughout their full life cycle: From initial trade date (as a pending, unsettled transaction) through to the day on which the trade finally closes (i.e. when the final return is fully settled). Pending returns and repo far legs are also included in the reconciliation.
Users familiar with one service easily become proficient with others as their roles develop, increasing staff flexibility and coverage whilst minimising training requirements and costs.
Accurately matching transactions from both sides ensures staff can focus on fixing the real issues and avoid wasting time chasing false breaks.
|User filters, sorting and reporting|
Advanced options make it easy to prioritise breaks and deal with the most critical first. Filtering supports a workflow driven approach where users only see those breaks of interest. Reports are downloadable directly into Excel.
|Leading edge security|
Security is assured using a multilayered architecture, so that in the unlikely event of the failure of any single layer, the data remains protected.
Sophisticated monitoring alerts Pirum to potential problems allowing pro-active action to maintain exceptional quality of service.
|Flexible run times|
Pirum’s event driven technology processes information as soon as it is received, ensuring that reconciliations are always as up-to-date as possible and providing unrivalled processing flexibility.
|Statistics and Benchmarks|
Aged break statistics by counterparty enable you to pinpoint specific issues and measure progress. ISLA benchmarks allow comparison of performance against market averages and recommended performance thresholds. Peer group statistics show how you are performing against similar companies.