Interpreting the Positions Reconciliation Report
Whenever there is a net position discrepancy, the first value is the position in PropReports and the second is the position at the external entity being compared. For example, here is a sample discrepancy report versus the Sterling platform:
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Position Reconciliation
PropReports compares its computed net positions against another source such as your DMA platform or clearing firm. The report shows the following information:
Account | Whenever comparing against a DMA platform, the account will be the PropReports Account Id (which should match the DMA platform). When comparing against the clearing firm, the PropReports Clearing Id is shown and positions are combined across one or more sub-accounts prior to comparison. Note that for all accounts in PropReports without a Clearing Id positions are combined and shown as a discrepancy with a blank account. |
Symbol | This is the ticker symbol of the security with the discrepancy. Symbols for positions that match are not shown. |
PropReports Qty | The first of the two numbers following the symbol is the net position quantity in PropReports. Negative value indicates a short position. 0 indicates flat and a double-dash ("--") indicates that there was no trading activity in that symbol that day. This is a subtle but useful distinction. |
External Qty | The second of the two numbers following the symbol is the net position quantity at the external entity being compared (clearing firm or DMA platform). Negative values indicate a short position. 0 indicates flat and a double-dash ("--") indicates that there was no trading activity in that symbol that day. Not all sources indicate flat positions and in those cases "--" will be shown regardless if there was trading activity in that security. |
Here is a sample discrepancy report of PropReports versus Sterling:
| No Format |
|---|
ABC123 AAPL 0 3,000 ABC456 DELL -- 100 IBM -100 -200 YHOO IBM500 -100 -200 |
The above indicates that at the end of 03/10/2011, account ABC123 was flat AAPL whereas Sterling was long 3,000 shares. Account ABC456 four discrepancies for account ABC123:
- ABC123 has trading activity in AAPL but is now flat whereas Sterling is showing a 3,000 share long position.
- ABC123 did not trade DELL on this day whereas Sterling shows the account long 100 shares.
- ABC123 is short 100 shares of IBM whereas
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Interpreting the Executions Reconciliation Report
When running an executions reconciliation, PropReports compares prices and quantities. It first attempts to match individual executions in an effort to identify the exact fill or fills that may be missing. If unable to do so (for example if order bunching is employed) PropReports will switch to aggregate average price matching.
If there is a discrepancy you may see some executions labeled "Internal" and some "External". Internal trades are trades in PropReports and External is a trade at the entity being compared. For example, here's a sample discrepancy report versus Penson:
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- Stering is short 200.
- ABC123 is long 500 shares of YHOO whereas Sterling is flat and it was not traded that day.
For more examples of various position discrepancies, as well as steps to fix them, please see Common Position Discrepancies.
Executions Reconciliation
PropReports will compare internally stored fills against another source such as your clearing firm. Running the reconciliation daily allows you to double-check that imported trading activity is correct and up-to-date. The report shows the following information:
Account | Whenever comparing against a DMA platform, the account will be the PropReports Account Id (which should match the DMA platform). When comparing against the clearing firm, the PropReports Clearing Id is shown and positions are combined across one or more sub-accounts prior to comparison. Note that for all accounts in PropReports without a Clearing Id positions are combined and shown as a discrepancy with a blank account. |
Symbol | This is the ticker symbol of the security with the discrepancy. Symbols that have no execution discrepancies are not shown. |
Source Indicator | Internal source refers to the fills in PropReports. External are fills at the source you are reconciling against. Difference are the trades that would need to be posted in PropReports in order for that discrepancy to reconcile. If there are many unmatched executions, just totals and average prices may be shown.
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Side / Intention | Buy (B), Sell (S), Short (T) or Cover (C). Not all sources indicate short or cover intention. In those cases, just Buy and Sell codes are used. See Fill Intention or Side for more information. |
Quantity | Quantity traded. Note that some clearing firms bunch trades together. In those cases, the external quantity is the bunched quantity as reported by the clearing firm. |
Price | Execution price. Note that some clearing firms bunch trades together. In those cases, the external price will be the average price of the bunched trade as reported by the clearing firm. |
Order Id | Order / Ticket Id as reported by the clearing firm (external) or stored in PropReports (internal). Order Ids are not used for reconciliation. They are displayed to make it easier to locate trades causing a discrepancy. |
Fill Status | If status is blank, it Indicates an execution is a regular trade. For journals, corporate actions and canceled trades, this field will contain various values. See Fill Status for more information. |
Here's a sample reconciliation report showing a busted trade:
| No Format |
|---|
ABC123 XYZ Internal: B 8004,300 @ 7310.90543 N7131ABC001 SQQQ Internal: S 15,000 @ 24.5867 ABC-123B 200 @ 10.541 ABC002 11112223 SSO Internal: 36 Executions... ========== S 5,100B 4,500 @ 4510.98803921542 (TOTAL) External: B S 700 4,300 @ 4610.06142857543 1AWGPABC001 B S 4,500 200 @ 4510.97888889541 1AWH2ABC002 CXLD ========== S 5,200B 4,300 @ 4510.99543 (TOTAL) Difference: S 100 @ 46.09000029 |
In account 11112222 there is a trade "Buy 800 ARLP @ 73.90" (order id N7131) at Penson and not in PropReports.This indicates that on 03/10/2011
- In account 11112222 PropReports has a trade "S 15,000 @ 24.5867" (order id ABC-123) and Penson does not.
- In account 11112223 Penson has an extra 100 shares of SSO traded. The missing execution is "S 100 SSO @ 46.09000029."
The difference is the the buy and/or sell trade that needs to be booked into PropReports in order to reconcile that discrepancy.
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B 200 @ 10.541 |
For more examples of various execution discrepancies, as well as steps to fix them, please see Common Execution Discrepancies.