Clearstream, part of Deutsche Börse Group, has launched two new data-based solutions offering insights into past, present and future of settlements: the Settlement Dashboard and the AI-powered Settlement Prediction Tool.

Market participants are currently looking to further improve their settlement efficiency and liquidity with the Settlement Discipline Regime (SDR) coming into force this February as failed settlement transactions result in financial penalties, operational overheads and reputational damage.

With Clearstream’s new data solutions, clients’ operations can leverage these predictions throughout the day to gain additional validation and to take appropriate actions to prevent any potential settlement fails, thereby accelerating settlements. Interactive visualisation provides multiple views, including a view of critical markets, asset classes and counterparties. This allows clients to benchmark their settlement efficiency against their peers.

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.”

Clearstream clients can use the service free of charge during the trial period from July to September 2022.

The Settlement Dashboard offers clients detailed insights on their settlement activity, such as 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 artificial intelligence (AI)-powered tool to minimise late settlements penalties and to maximise value of their assets by allocating them accordingly.