60–80%
Reconciliation exceptions reduced
Same-day
Break detection capability
T+1 ready
Settlement cycle compliance
Automated
FINRA fail reporting
Client Snapshot
Industry
Capital Markets
Solution
Data Solutions | Process Solutions
Complexity
High
Delivery
Architecture + Implementation
The Problem
Post-trade operations generate the highest manual exception volume in capital markets back offices. Trade breaks, settlement fails, and reconciliation exceptions require investigation across counterparty confirmations, CCP data, custodian records, and internal position systems that rarely agree on trade details at first match. The operational cost of manual exception resolution is significant — but the compliance cost of systematic settlement failures under T+1 is higher.
The US shift to T+1 settlement in May 2024 compressed the window for manual break investigation from two days to one eliminating the buffer that most back-office teams relied on for discovering and resolving mismatches. Firms using overnight batch reconciliation consistently discover breaks after the T+1 settlement window has passed, producing FINRA settlement fail reporting obligations and client relationship risk simultaneously.
Ready to Start?
Schedule a Post-Trade Operations Assessment
Get a candid analysis of your current settlement fail rate, reconciliation exception volume, and T+1 compliance posture.
T+1
US equities settlement since May 2024 eliminating the overnight investigation buffer most back offices relied on. Firms without automated same-day break detection are systematically failing settlements that could have been caught and resolved within the settlement window. Settlement fail rates above peer benchmarks now create direct FINRA reporting exposure.
How PiTech Delivers
01
Unified Trade Lifecycle Data Integration
Trade data integrated from execution venues, OMS, CCP, custodian, and internal position systems into a single data model with common trade identifiers and shared reference data. The data model eliminates the identifier mismatch problem that causes the majority of reconciliation false breaks where the same trade is represented with different IDs across systems.
02
Automated Reconciliation Engine
Rule-based matching across counterparty and internal data sources with tolerance rules calibrated by asset class and counterparty characteristics. Match rate optimization through intelligent tolerance handling. Unmatched items classified by break type quantity, price, settlement date, identifier for priority-based routing to investigation queues.
03
Same-Day Break Detection and Investigation Workflow
Break notifications delivered in real time with pre-populated investigation context counterparty confirmation, execution record, custodian record, and position data assembled automatically. Investigation workflow tracks each break from detection to settlement confirmation with full audit trail. Escalation triggers for breaks approaching settlement deadline.
04
Regulatory Reporting and Analytics
Proven Outcomes
60–80%
Reconciliation exception reduction in deployed programs
Same-day
Break detection capability replacing overnight batch discovery
25–40%
Program timeline compression through PiTech data engineering methodology
Proven Outcomes
18+
Years in Regulated Industries
What You Gain
60–80%
Reduction in reconciliation exceptions requiring manual investigation
Same-day
Break detection replacing overnight or next-day discovery
T+1 ready
Settlement workflow for covered equity and fixed income categories
Automated
FINRA settlement fail reporting and DTCC submission workflow
What's Included
Trade lifecycle data integration
Trade lifecycle data integration
Automated reconciliation engine
Automated reconciliation engine
Same-day break detection
Same-day break detection
Investigation workflow management
Investigation workflow management
Settlement deadline escalation
Settlement deadline escalation
FINRA settlement fail reporting
FINRA settlement fail reporting
Exception analytics dashboard
Exception analytics dashboard
Frequently Asked Questions
How did T+1 settlement specifically change the reconciliation challenge?
T+1 eliminates the T+2 manual investigation buffer. Under T+2, a break discovered at overnight batch had the following business day for investigation and resolution before the settlement deadline. Under T+1, a break not discovered and resolved same day produces a settlement fail. Firms using overnight batch reconciliation are systematically late to discover breaks that could be caught and resolved within the settlement window with real-time detection.
Does PiTech integrate with DTCC and major CCPs directly?
Yes. PiTech has data integration experience with DTCC (DTC, NSCC, FICC), Euroclear, Clearstream, LCH, ICE Clear Credit, and major prime brokerage custody platforms. Integration architecture uses standard industry messaging formats (SWIFT FIN, FpML, FIX) where available, with custom adapters for legacy settlement system connectivity.
What types of breaks does automated reconciliation typically resolve without human intervention?
Automated matching typically resolves quantity mismatches within tolerance thresholds, price differences within configurable tolerance ranges, counterparty identifier mapping issues (where different IDs represent the same counterparty), and settlement date discrepancies attributable to holiday calendar differences. Complex breaks involving trade amendments, partial fills, or disputed terms require human investigation workflow automation reduces investigation time rather than replacing analyst judgment.
How does post-trade data infrastructure support regulatory reporting beyond settlement fail reporting?
The unified trade lifecycle data model serves as the data source for EMIR trade reporting, MiFID II transaction reporting, SEC equity data rule submissions, and CFTC swap data reporting the same data that reconciliation uses is the data regulatory reports require. Building post-trade reconciliation on a unified data model enables single-source regulatory reporting across multiple obligation types.
How long does a post-trade reconciliation modernization program take?
A focused program covering equity and fixed income reconciliation and same-day break detection for a mid-tier broker-dealer typically runs 9–14 months from architecture design to production. Programs that also cover derivatives and foreign exchange add 6–9 months. PiTech stages delivery to produce measurable same-day detection capability in the first phase before full platform completion.
T+1 settlement compliance is no longer a future planning exercise it is a current operational requirement with direct FINRA reporting consequences.
PiTech builds the post-trade data infrastructure that makes same-day break detection and T+1 compliance operational. Contact us to discuss your program.
Related Use Cases
KYC and Client Onboarding Automation
PiTech automates the full loan origination lifecycle from application intake through closing and servicing handoff reducing consumer origination cycle time
Bank M&A Technology Due Diligence and Integration
PiTech executes bank M&A technology due diligence and post-merger data harmonization identifying technology risk before deal close, sequencing integration with
Digital Lending Workflow Automation
PiTech automates the full loan origination lifecycle from application intake through closing and servicing handoff reducing consumer origination cycle time
Reach Our Customer Service Team
-
Address
4000 Sancar Way, Suite 205, Durham, NC 27709
-
Contact Details
(919) 439-3163
