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:
Discrepancies for 2011-03-10
ABC123
AAPL 0 3,000
ABC456
IBM -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 is short 100 shares IBM whereas Sterling shows the account short 200.
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:
Discrepancies for 2011-03-10
11112222
ARLP
External:
B 800 @ 73.90 N7131
SQQQ
Internal:
S 15,000 @ 24.5867 ABC-123
11112223
SSO
Internal:
36 Executions...
==========
S 5,100 @ 45.98803921 (TOTAL)
External:
S 700 @ 46.06142857 1AWGP
S 4,500 @ 45.97888889 1AWH2
==========
S 5,200 @ 45.99 (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.
Some allowance is made for rounding errors. Specifically, if the difference in average price between two executions is less than 0.00005 then that difference is ignored.