A Comprehensive Geneva-VPM Reconciliation Tool

Background
A leading Hedge Fund Administrator used Geneva to maintain the books and records for their clients. One of their clients used Sungard VPM internally, and would reconcile monthly against the administrator's Geneva system. However, this reconciliation was accomplished with spreadsheets and was only done at a high level, as a Summary Trial Balance report. This reconciliation was also very time consuming and problematic, making the month-end reconciliation very difficult.

Results
We implemented a solution for this client using Paladyne Analytics Master. Analytics Master was hosted at Paladyne's ASP, and was used to take daily snapshots of the Administrator's Geneva system (capturing just the data for the client hedge fund), and it also took simultaneous snapshots of the client hedge fund's VPM system. Within Analytics Master, we developed a Detailed Trial Balance report that enabled a very thorough reconciliation of the accounting data between the administrator's Geneva data and the client's VPM data. This system was set up to automatically run on a daily basis, making the reconciliations simple, comprehensive, and daily. This not only provided great value to the client hedge fund, but the administrator now had a solution that was immediately usable for all of their other hedge fund clients.


A Complete Hedge Fund Platform

Background
A high volume hedge fund (2.5 million shares traded daily) was dependent on a single Execution Management System (EMS) for executing their trades. This system did not provide an automated way to perform allocations for allocating those trades between their multiple funds. The fund also did not have their own accounting system and was completely dependent on their administrator, as well as upon their single Prime Broker and their Prime Broker's systems. The hedge fund personnel needed a solution to these problems. They wanted to become EMS-agnostic, with the ability to have multiple trade capture systems in their front office; they wanted to become multi-prime, without a dependency on their prime broker's systems; they wanted to have their own accounting system so that they could have an on-demand, as well as an accurate end-of-day P&L, and they wanted the ability to reconcile their data against their prime brokers, admin, and counter-parties.

Results
We conducted a thorough analysis of the fund's situation, and proposed a three phase plan to provide value to the client. For the first phase, we implemented Advent Geneva as their accounting system with Paladyne Security Master feeding security reference data and corporate actions to Geneva, along with Paladyne Price Master feeding prices to Geneva. We helped the fund in choosing their market data and reference data solutions (Bloomberg), which we integrated with the Paladyne products. We also set up Paladyne Portfolio Master as their Order Management System (OMS), which took a trade file from their EMS, and then allowed them to allocate their EMS trades before Portfolio Master posted them back to Geneva. Finally, we set up Advent Geneva and integrated that with their Geneva instance via BizTalk and Advent Workflow Manager. In the second phase we implemented Paladyne Analytics Master, which served as their reporting hub, as well as providing a means for reconciling with their prime broker and admin. In the final phase, we implemented real-time FIX connectivity between the Portfolio Master OMS and their EMS via NYFIX, enabling them to bring on additional front capture systems with real-time FIX connectivity.