Duco for Crypto

Client reporting errors can impact clients’ ability to make decisions, erode their trust, and can ultimately lead to fines and sanctions. Ensuring accuracy requires reconciling potentially complex data across multiple systems and ensuring that data is fed to reports without error.

As data flows between systems, enrichment and modifications can allow errors to creep in and propagate across your business. Reconciling this data can be a time consuming and manual process, introducing significant operational risk and limiting your ability to manage change effectively.

Custody data is used to verify valuations, fulfil fiduciary and reporting duties to clients, ensure accurate payments and fees, and understand your risk position. But the volume and breadth of custodians means inbound data is frequently unstandardised and exception management can be clunky and time consuming.

With crypto – as with other trades – you need to ensure that your trades and positions are correct between internal records and the blockchain as well as liquidity providers and custodians. However, crypto assets don’t generally have standardised formats for expressing trades and holdings, which can mean a lot of manual work to carry out reconciliations. In addition, the market is demanding more stringent processes and evidence of best practices, which means error-prone manual processes aren’t going to cut it with the regulators or with clients.

The risk reporting environment is growing in complexity. In addition to the challenges around risk reporting methods in annual reports, regulations like BCBS 239 and others require timely, accurate and granular reporting of risk data in specific formats. Organisations need to be flexible and adaptable to respond to changing data requirements as well as to changes to the regulations themselves.

Risk teams are busier than ever in the face of a fast-changing business landscape. As processes, systems and activities shift, the complexity associated with compiling, normalising and reconciling risk data continues to increase. Having confidence in your risk exposure and financial health at all times, across all areas of risk, is vital but to do this your teams must deal with large volumes of highly complex data, drawn from disparate sources, in varying file formats.

When migrating between old and new systems, you need to ensure that your data remains accurate and complete. But frequently, errors can creep in, particularly if you are relying on spreadsheets and existing platforms. Bad data frequently doesn’t show itself until late in the process, when it can have the biggest impact.

Without trustworthy, complete and consistent reference data, errors creep into processes across the business and create mayhem down stream. Reference data impacts nearly every other reconciliation and data management activity your business does. So how do you ensure it’s right?