Financial Products- CSDR
Within the wider CSDR framework, which has introduced multiple changes to increase the efficiency securities settlement, the introduction of the section on ‘settlement discipline’ is a significant shift.
Settlement Discipline aims to improve market behaviours by introducing multiple measures including:
• Mandatory cash penalties for failing trades
• Mandatory buy-ins
• Cash compensation
Depending on where your business is positioned in the market, the challenges introduced by CSDR will include:
• Requirement to execute buy-ins
• Being subjected to incoming buy-ins
• Payment/management of cash penalties
• Appointment and management of buy-in agents
• Upticks in securities lending volume and sensitivity
• Increased claim volumes
• Payment/management of cash compensation
• Increased query volumes between all parties to trades
Having worked closely with in excess of 40 organizations via regular Working Group forums, Access Fintech has defined a comprehensive CSDR product that allows clients to manage the entire lifecycle.
By using the CSDR product in conjunction with the live Settlements product, Access Fintech will enable clients not only to manage CSDR-driven penalties and buy-ins, but to maximise opportunities to prevent fails entirely. A robust audit and MI offering allows for in-depth review of root cause to mitigate risk of re-occurrence.
Tried and tested, Access Fintech's CSDR solution builds on the foundations of a live and extremely well-received Settlements Product, developed by a business that is passionate about working with clients to transform their operating models.
What are the benefits of using Access Fintech’s CSDR solution?