FRANKFURT — In preparation for the forthcoming Settlement Discipline Regime (SDR), Deutsche Börse Group (ETR: DB1) has revealed its post-trade service provider, Clearstream, will introduce an AI-powered Settlement Prediction Tool. This tool aims to forecast settlement failures, providing market participants with crucial insights into their settlement operations, according to a press release published on EuropaWire.
The impending SDR, scheduled for implementation in February, has spurred a demand for enhanced settlement efficiency and liquidity. Clearstream’s innovative approach addresses this need by offering predictive analytics through its Settlement Prediction Tool, complemented by the Settlement Dashboard. These tools furnish users with comprehensive data insights spanning past, present, and future settlements.
According to Priya Sharma, Head of Data & Connectivity at Clearstream, the predictive and prescriptive solutions are poised to revolutionize settlement operations. Sharma emphasizes the critical role of data in facilitating informed decision-making, operational excellence, and compliance with regulatory requirements.
By leveraging high-quality predictive data, Clearstream empowers clients to preempt settlement failures, thereby mitigating financial penalties and operational risks. During the trial period from July to September 2022, clients can access these services free of charge, enabling them to optimize settlement efficiency and navigate the evolving regulatory landscape.
Clearstream’s new data solutions offer a multifaceted approach to settlement optimization:
- Settlement Dashboard: Provides clients with detailed insights into their settlement activity, facilitating continuous monitoring and performance assessment.
- Settlement Prediction Tool: Utilizes AI algorithms to forecast the likelihood of timely settlements, empowering users to proactively manage their settlement processes and minimize late settlement penalties.
These initiatives underscore Clearstream’s commitment to leveraging technology to enhance market efficiency and facilitate seamless settlement operations.
