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Key Metrics in Trade Operations & Reconciliation

Key Metrics in Trade Operations & Reconciliation

1. Breaks Aging Report

Tracks how long unmatched items remain unresolved. Helps identify delays and compliance risks.

Example: 10 breaks are >7 days old — escalated to senior ops.

2. Break Volume

Number of unmatched trades, positions, or cash breaks daily. Indicates process effectiveness.

Example: Normal break volume is 50/day. Sudden spike to 120 = flag system issue.

3. STP (Straight Through Processing) Rate

Percentage of trades processed without manual intervention. Higher is better.

Example: Derivatives team hits 95% STP due to trade automation.

4. TAT (Turnaround Time) to Resolve Breaks

Measures responsiveness and issue-resolution efficiency.

Example: Average TAT to resolve cash break is 3 hours.

5. Escalation & Exception Count

Tracks high-risk or high-value issues that need special attention or compliance escalation.

Example: 3 exception cases escalated to compliance for AML check.

6. Root Cause Analysis (RCA) Metrics

Breakdown of root causes to prevent repeated breaks and fix systemic issues.

Example: 40% of breaks due to delayed broker confirmations.

7. Daily Sign-off Compliance

Ensures that daily reconciliation is completed and verified for audit and control.

Example: Missed sign-off for 2 days flagged in internal audit.

8. Client Impact Analysis

Monitors how many unresolved issues directly affect clients.

Example: 2 of 50 breaks affected client payments — added to risk register.

9. Aging Buckets Metrics

Categorizes unresolved breaks based on how long they are pending.

Example: 85% of breaks resolved within 1–3 days.

10. Volume Trend Dashboards

Visualizes daily/weekly trade or reconciliation volumes for trends or issues.

Example: Monthly trade volume dipped 10% in June due to holidays.

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