Platform One is launching an "easy-to-integrate" Trade Reconciliation and Aggregation/ Disaggregation Engine (TRADE) to remove spreadsheets and human error by automating manual processes.
In a statement on 5 October, it said too many advisory firms globally rely on spreadsheets and inefficient tools to manually disaggregate bulk trades they make with brokers before reporting this key information back to clients.
Platform One currently work with a few firms across the Middle East and Asia but are keen to build their presence, particularly in the APAC and Gulf regions.
They're expecting this development to significantly help drive growth in the region.
The new technology removes resource-intensive and risky activities for advisory firms, saving time and increasing security for them and their clients, the platform said.
Platform One identified how the software helps solve three crucial elements of the trading process.
Firstly, it said there's the trade aggregation - combining client trades into a single net market trade. This has the potential to reduce fees and some of the operational overheads associated.
Then comes the trade disaggregation - the ‘de-bulking' of bulk trades that were placed with the broker. For example, an adviser may place an aggregate order of £1m into an asset on behalf of multiple underlying clients. They then need to split that back out, post-settlement, to show which clients hold an exact portion/number of units in that asset.
Finally there's the reconciliation - this is the process of linking, from a record perspective, all of those broken-down trades/holdings to the underlying client accounts and displaying it to the end client.
Completing these three crucial trading activities through spreadsheets can lead to several problems, including display issues, valuation errors and potentially erroneous investment decisions off the back of inaccurate data. All of this has the potential to trigger complaints and costly compensation pay-outs.
Advisory firms can streamline these processes by plugging in Platform One's API to automate the data transfer from their investment broker. The software then aggregates/disaggregates and reconciles the trades automatically. This removes the need for spreadsheets or manual processing eliminating the potential for human error, the platform further said.
Platform One CEO Alex Cowan-Sanluis said: "We've built this software following feedback from a number of advisory firms from around the globe. To run such important client and investment data through spreadsheets in 2023 is resource-intensive and puts unnecessary risks on businesses.
"TRADE is purpose-built to nullify human error, save time and provide a more secure way for advisory firms to aggregate/disaggregate and reconciliate trades. Using a simple API plug-in we can remove a significant amount of risk from adviser businesses and streamline an inefficient process."
If an advice business has a separate client-facing portal, data can be sent through that technology for advisers and clients to view in customised form. Or, if desired, Platform One can provide a white-labelled front-end client portal.
If an advisory firm wants to connect using TRADE but their broker does not have an existing connection with Platform One, a new link can be explored with the broker.