Accurate Software’s operational risk management solution has been bought by Jefferies & Co to improve the automation of its reconciliation and exception management processes.
“Jefferies will deploy Accurate NXG to increase operational efficiency, reduce exposure to risk and meet industry regulations such as Sarbanes-Oxley and Basel II,” explains a spokesman for Accurate. “Jefferies required a robust transaction management solution to automate the processing of its cash and securities reconciliations and reduce the associated exposure to risk.”
With two main trading offices in New York and London, Jefferies sought to consolidate its existing regional systems to create one global reconciliation platform located at its operations centre in New Jersey, USA.
The first phase of implementation will focus on improving automation of processes at the New Jersey office, in particular the reconciliation of books and records with statements from its custodian bank. The second phase will involve automating the reconciliation of suspense accounts and Euroclear cash statements and positions.
Jefferies & Co is obliged required to comply with the corporate governance guidelines of Sarbanes-Oxley. Accurate says NXG will enable Jefferies to demonstrate to internal and external auditors that senior management are effectively managing its financial transaction processes, a key requirement of the act.
“The depth of functionality within Accurate NXG more than answers our immediate business need to automate our reconciliation and exception management processes,” says Alfred R. Petrillo, Senior Vice President, Jefferies & Company Inc. “We believe Accurate NXG will be a valuable asset over and above helping us to comply with industry regulations. The expected efficiency gains will significantly impact our work practices and ultimately improve processing efficiency.”
Gary Gibbs, Executive Vice President North America, Accurate Software, added that industry regulations such as Sarbanes-Oxley have accelerated the move to transaction automation to reduce manual processes and mitigate risk. “Accurate will work closely with Jefferies to streamline business processes, improve operational efficiency and enhance Jefferies’ ability to demonstrate compliance with applicable regulations,” he says.