Clearstream today announced that it has introduced two new tools to help its clients predict settlement failures and foster settlement efficiency and liquidity for the entire market.
According to the subsidiary of Deutsche Börse Group, the new data-based solutions aim to help “optimising the settlement life cycle”.
One of the new tools is the Settlement Dashboard which allows users to look into past and present settlements. The Settlement Prediction Tool is an artificial intelligence (AI)-powered instrument that provides insight into future settlements.
Luxembourg-headquartered Clearstream’s new data solutions allow clients to leverage these predictions to gain additional validation and to take appropriate actions to prevent any potential settlement fails, thus accelerating settlements.
According to the international central securities depository (ICSD), the enforcement of the Settlement Discipline Regime (SDR) has made the tools necessary as failed settlement transactions result in financial penalties, operational overheads and reputational damage
Clearstream also noted that the interactive visualisation on the new Settlement Dashboard tool provides clients with multiple views, including a view of critical markets, asset classes and counterparties.
Priya Sharma, Head of Data & Connectivity at Clearstream, said:
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.
