Bloomberg has launched a new solution within its FailStation platform, a settlement-exception management tool, to support compliance with the Central Securities Depositories Regulation (CSDR), ahead of the upcoming February 2022 implementation deadline.
The new component facilitates customers’ CSDR compliance through a combination of automated settlement exception management tools and Bloomberg CSDR data — aggregating real-time pre-and post-settlement exceptions from custodians into a consolidated view.
The platform allows clients to prioritise fails based on penalty size, isolate CSDR eligible transactions, and send automatic notifications to internal and external stakeholders and initiate the resolution process — in an effort to augment successful settlement rates and minimise penalties.
From a single screen, customers can utilise Bloomberg data to enrich settlement information to analyse and prioritise trade exceptions. This analysis provides customers with counterparty scorecards to help identify the source of settlement failures.
FailStation also provides clients with automated exception management, including tools to streamline unstructured communications around settlement failures, ultimately decreasing risk and operational overhead.
FailStation is integrated with Bloomberg AIM, an order management system, and forms part of a consolidated post-trade operations package.
The processing of buy-ins, cancellations, and custodian communications associated with CSDR can be executed by utilising AIM’s direct custody connectivity.
The solution connects and normalises disparate data from more than 150 custodian banks, prime and executing brokers to create a comprehensive post-trade network, says Bloomberg.
Ian Peckett, global head of buy-side product at Bloomberg, comments: “Providing clients with robust post-trade solutions natively integrated into our order management system is an important part of our end-to-end buy-side offering to help them navigate the complexity of CSDR without impacting their existing front office workflow.
“As the buy-side faces increased regulatory scrutiny, margin compression, and growing client expectations around transparency and the availability of information, Bloomberg Buy-Side Solutions serves as their technology partner to help meet those requirements by optimising processes and accelerating the flow of information across the entire trade lifecycle through the use of advanced analytical tools.”
