Securities Finance Industry News | Clearstream launches data solutions to predict settlement efficiency
Clearstream has launched data-driven solutions, Settlement Dashboard and AI-powered Settlement Prediction Tool, to offer settlement insights.
According to the Luxembourg-based International Central Securities Depository (ICSD), market participants seek to improve their settlement efficiency and liquidity with the settlement discipline regime (SDR).
With SDR settlement due to take effect in February 2023, failed settlement transactions can result in financial penalties, operational overhead and reputational damage.
The Settlement Dashboard provides customers with insight into their settlement activity – including analysis of effectiveness and failures – allowing them to monitor settlement activity, assess potential day-to-day impact and compare to the market.
The settlement prediction tool predicts the likelihood that a specific instruction will settle on time, up to two business days in advance.
Users can leverage the AI-powered tool to minimize late settlement penalties and maximize the value of their assets by allocating them accordingly.
Priya Sharma, Head of Data and Connectivity at Clearstream, comments: “At Clearstream and Deutsche Börse, we believe in the power of data. Our predictive and prescriptive solutions provide insights and forecasts that help our customers make better decisions that improve their performance and business growth.
“Most colonization failures are due to a lack of detailed knowledge of one’s own colonization activities. By leveraging high-quality predictive data, we provide our clients with this insight to be better equipped for regulatory requirements, operational excellence and regulatory effectiveness.
Clearstream customers can use the service for free during the trial period from July to September 2022.
Previously, Clearstream also announced the launch of its Own Selection Criteria with Automated Reasoning (OSCAR) solution, which saw the application of AI to accelerate advances in warranty management automation.