Settlement Monitor: The Silver Bullet for CSDR

Insight

EquiLend: The Silver Bullet for Same-Day Settlements Under CSDR

CJ Emson

Feb 2022

Iain MacKay, Global Product Owner for Post-Trade Services at EquiLend, recently discussed so-called ghost settlements with Global Investor. At the time, the hero of the piece was EquiLend Exposure, which serves to shorten the latency of the total trade lifecycle in efficient support of collateral management.  

Where EquiLend Exposure reduces settlement costs associated with failing trades, the tie-in with Settlement Monitor, the newest release from EquiLend, eliminates them. 

Same-Day Settlements

By leveraging the two services together, clients can:  

  • On EquiLend Exposure, instruct the tri-party agent to collateralize a trade 
  • The tri-party agent matches collateral to the appropriate schedule and transfers to the agent’s account  
  • The agent informs EquiLend that the lender is collateralized  
  • Settlement Monitor provides a centralized view of all the components which affect settlement of a trade. Taking a real-time feed from EquiLend Exposure, this includes real-time collateral status. Settlement Monitor’s easy-to-view UI enables clients to have instant visibility of issues to enable settlement and eradicate fines. 

Without the seamless integration between parties as described above, same-day settlements—desirable under CSDR—would be nearly impossible. Now, it is as simple as easily onboarding to EquiLend’s solutions. 

Hot Shot

In the weeks since its first release in January 2022, Settlement Monitor has already saved clients hundreds of thousands of euros in potential settlement fines under CSDR.  

Settlement Monitor tracks, reconciles and resolves pending and failed securities lending transactions, comparing mandatory fields required for settlement to identify and address issues which may cause trades to fail.  

As is standard with EquiLend products, Settlement Monitor is interoperable with all other EquiLend services and utilizes the wide-ranging data available across the EquiLend product suite. This enables seamless pre-matching of data for each trade to identify potential fails and eliminate potential fines.  

Bite the Bullet

Settlement Monitor can be added easily to any existing EquiLend subscription and is agnostic to the other market technology. Contact us today at EquiLendCRM@equilend.com to see how quickly your settlement fines could be eliminated.  

Who We Are

EquiLend is a global financial technology, data and analytics firm offering Trading, Post-Trade, Data & Analytics, RegTech and Securities Finance Platform Solutions for the securities finance industry. EquiLend has offices in New York, New Jersey, Boston, Toronto, London, Dublin, India, Hong Kong and Tokyo and is regulated in jurisdictions around the globe.