Glass will notify administrators if there is user trading activity that doesn't match pre-clearance requests entered into the system. Some examples of reconciliation breaks are:
- User entered a sell in Glass, but purchased a security in their brokerage account
- User purchased a greater number of shares than what was pre-cleared in Glass
- Share quantity is an optionally required match. If it's set to optional in the security defaults, Glass will not alert admins to reconciliation breaks on quantity
- User enters a different security identifier than what was actually traded (e.g.- wrong CUSIP for bonds)
- User does not pre-clear a transaction that is found on their brokerage feed
Occasionally, an administrator may receive a break notification for a corporate action. Glass aims to minimize breaks caused by corporate actions though proprietary matching technology. Common corporate actions that may cause reconciliation breaks are:
- Stock dividends
- Stock splits
- Mergers/Acquisitions
- Bond maturities
- Option exercise or expiration
As an administrator, you will receive a message notification and an item on your task list if there is a reconciliation break. To research a break:
- Navigate to tasks on the left navigation panel
- Click on the reconciliation break
- Click into the card to see details and reasoning
- Either acknowledge or mark as a violation
- if acknowledged, the system reporting and audit trail will not flag as a violation, assuming that the compliance officer deemed this action to be in accordance with regulation
- if marked as a violation, the reconciliation break will show as a violation, and not in line with the regulation rule