Bank / Brokerage / CDP Reconciliation

Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
#1
Hi,

Just wanted to seek advice from buddies on the most efficient way to reconcile btw Bank a/c statement vs Brokerage a/c statement vs CDP statement, specifically when one uses Electronic Payment for Shares(EPS) via online banking/ATM to pay for shares bought or receive payments for shares sold. This is further complicated by the trust account usage(using trust balance to pay for shares or receive payment for sale of shares) or when there is a technical issue with EPS (i.e. bank wasn't able to retrieve info from broker to proceed with individual contract payment).

E.g. person P
P buy shares of X at $10,000, XX at $5,000, XXX at $10,000.
P then uses EPS and select individual contract payment to select the amount due and pay. (however, at the bank level, only the amt is displayed and the counter will not be shown, so duplicate amounts e.g. $10,000 will appear as separate entries)

This becomes very tricky when
(1) P trades for consecutive days, adding to the copious list of buy/sell transactions  
(2) and on days where somehow, the bank system is unable to provide the individual contract payment option and P has to use the "lump sum payment" option.
(3) P has too much trust balance built up, and decide to use some of it to pay for shares

Consequently, P will end up with a list of payment/withdrawal transactions displayed on bank accounts statements which P has to match with the amounts in the broker, and then match with the quantity of shares credited into/debited from CDP. If there are foreign shares involved, another set of headache is added.

To be honest, I have not really reconciled all these(btw bank, broker and CDP) till today *oops*, but I suddenly thought whether am I too careless in trusting that there will not be any technical errors ?

Do buddies here have the same concerns as me ?

Why can't there be a simplier process to "link" the broker and the bank ?

Thanks for any advice. Heart
Reply
#1
Hi,

Just wanted to seek advice from buddies on the most efficient way to reconcile btw Bank a/c statement vs Brokerage a/c statement vs CDP statement, specifically when one uses Electronic Payment for Shares(EPS) via online banking/ATM to pay for shares bought or receive payments for shares sold. This is further complicated by the trust account usage(using trust balance to pay for shares or receive payment for sale of shares) or when there is a technical issue with EPS (i.e. bank wasn't able to retrieve info from broker to proceed with individual contract payment).

E.g. person P
P buy shares of X at $10,000, XX at $5,000, XXX at $10,000.
P then uses EPS and select individual contract payment to select the amount due and pay. (however, at the bank level, only the amt is displayed and the counter will not be shown, so duplicate amounts e.g. $10,000 will appear as separate entries)

This becomes very tricky when
(1) P trades for consecutive days, adding to the copious list of buy/sell transactions  
(2) and on days where somehow, the bank system is unable to provide the individual contract payment option and P has to use the "lump sum payment" option.
(3) P has too much trust balance built up, and decide to use some of it to pay for shares

Consequently, P will end up with a list of payment/withdrawal transactions displayed on bank accounts statements which P has to match with the amounts in the broker, and then match with the quantity of shares credited into/debited from CDP. If there are foreign shares involved, another set of headache is added.

To be honest, I have not really reconciled all these(btw bank, broker and CDP) till today *oops*, but I suddenly thought whether am I too careless in trusting that there will not be any technical errors ?

Do buddies here have the same concerns as me ?

Why can't there be a simplier process to "link" the broker and the bank ?

Thanks for any advice. Heart
Reply


Forum Jump:


Users browsing this thread: 1 Guest(s)