Clearstream has launched data-based solutions, Settlement Dashboard and artificial intelligence (AI)- powered Settlement Prediction Tool, to offer insights into settlements.
According to the Luxembourg-based international central securities depository (ICSD), market participants are searching to improve their settlement efficiency and liquidity with the Settlement Discipline Regime (SDR).
With the SDR regulation expected to come into force in February 2023, failed settlement transactions may result in financial penalties, operational overheads and reputational damage.
The Settlement Dashboard offers clients insights on their settlement activity — including efficiency and failure analysis — allowing for monitoring of settlement activity, assessing the potential impact on a daily basis and benchmarking against the market.
The Settlement Prediction Tool predicts the probability that a specific instruction will settle on time, up to two business days in advance.
Users can leverage the AI-powered tool to minimise late settlement penalties and maximise the value of their assets by allocating them accordingly.
Priya Sharma, head of data and connectivity at Clearstream, comments: “We at Clearstream and Deutsche Börse are convinced of the power of data. Our predictive and prescriptive solutions provide insight and foresight that help our clients make better decisions that improve their performance and business growth.
“Most failed settlements happen due to lack of detailed knowledge of one’s own settlement activities. By leveraging high-quality predictive data, we provide our clients with that knowledge to be best equipped for regulatory requirements, operational excellence and settlement efficiency.”
Clearstream clients can use the service free of charge during the trial period from July to September 2022.
Previously, Clearstream also announced the release of its Own Selection Criteria with Automated Reasoning (OSCAR) solution, which saw the application of AI to accelerate its advances in collateral management automation.
