Electronic Broker Confirmation Matching Adoption

LEAP has always been an advocate of electronic transmission, translation, and ‘matching’ of derivative and physical energy transactions via multiple sources.  While the use of trade repositories submitted by market counterparties has been the focus of industry participants and regulatory bodies for the last several years, a potentially underutilized form of electronic trade verification is available from a growing number of brokers who provide electronic forms of their trade confirmations to counterparties or to services that allow them to electronically verify their trade data.  Broker confirmations are particularly valuable since they are often the first external record that a company’s internal control functions can use to guard against inaccuracy and fraud, and often are the source of documentary evidence during audits and investigations.

The use of one of several electronic broker confirmation services or building internal applications to process electronic broker confirmations allows companies to:

  • Expedite the discovery and resolution of incorrect trade entry errors and fraud within their internal systems, often on trade date
  • Reduce operations cost through reduction in time spent in manually receiving confirmations, performing reconciliations, and archiving documents for use in audits
  • Eliminate the possibility of human error from the manual visual affirmation of confirmations

LEAP has sponsored the creation and maintenance of a Broker Adoption Matrix since 2010 along with support from brokers and:

The Broker Adoption Matrix is an educational tool for individuals within commodities trading organizations to quickly reference the scope of options available for electronic broker confirmations in the over-the-counter financial and physical trading markets.  The Matrix is particularly helpful for companies to periodically ensure that they are taking advantage of electronic solutions for new brokers entering new markets and matching platforms expanding their service offerings.

LEAP will send out updates via our Email and RSS Link messages when updates to the Electronic Broker Confirmation Matching Matrix are available.

If you have any questions or corrections regarding the Matrix or about broker confirmation matching, please contact richard.c.england@shell.com or call 713 230 3615