Why is my FAA Daily Advice Note showing a different total to my SAA data?
Our new Settlement Administration Agent (SAA) went live on our Kinnect Platform in June 2023. Since then, a small number of customers have asked why rounded numbers are used for trading charges invoiced by the Funds Administration Agent, (FAA) compared with figures that are reported by the SAA reports.
The new SAA has been designed to carry out Settlement calculations with greater precision and consistency throughout. The opportunity for providing greater precision has been made available through the use of more modern technology, and learning from operating the legacy Settlement Administration Agent solution for two decades.
The calculations performed by the new SAA are designed to round data at the final stage of the process, the point at which data is released by the SAA each day to be invoiced by the FAA.
The Settlement Trading Charge data is rounded to two decimal places for reporting purposes and released to customers directly from the Settlement Solution (in SAA-I014 flows).
However the data is not stored as a rounded value for each Settlement Period and maintains a greater precision. As a result the Trading Charges reported by SAA can have penny differences when compared to the daily sum of Trading Charge invoiced by the FAA.