getting Settlement Discipline Regime (SDR) compliant
A consolidated solution for enforcing settlement discipline within your organisation in order to be SDR compliant, improve efficiency and avoid penalties
avoid buy-ins and fines
manage settlement risk
what market problems does SureVu solve?
In February 2021 we will see the introduction of the new Settlement Discipline Regime (SDR) that harmonises the way Central Securities Depositories operate across the EU
A key aspect of the regulation is the enforcement of mandatory buy-ins, a step that will add to the pressures and critical deadlines faced by the typical Operations team.
Pre-settlement and failed trade management tends to be the last bastion of non-automation for a large majority of both sell- and buy-side firms, who rely on clunky custodian or agent portals or manual reports. With a mandatory buy-in deadline being imposed of T+4 (for equities and fixed income securities) the time frame for resolving failed transactions across the EU is being compressed.
This will no doubt require most Operations teams to provide even more oversight and resource to an already manually intensive process, reducing the scalability of the team as a whole.
In order to safely navigate the new requirements of the regulation, Operations Managers will have no choice but to automate in order to bring the process under control, maintain operational efficiency and mitigate the penalty and buy-in risk down to the smallest possible margin.
Common challenges and solutions
Compliance with the Settlement Discipline Regime
Imposition of fines and mandatory buy-ins:
Multiple systems tracking trade failures
Trade settlement teams constantly having to gather and reconcile data from multiple systems:
Uncertainty over settlement risk
Difficulties in understanding complete exposure to unsettled trades:
what SureVu does
Available as a cloud-based, fully managed service, SureVu is your consolidated solution for enforcing settlement discipline within your organisation in order to be SDR compliant
It is designed for investment managers, broker-dealers, outsourcers (asset servicing and securities servicing firms) and custodians.
The intuitive, easy-to-use software is designed to automate and improve existing business processes, bringing scalability in the face of an ever-increasing regulatory environment.
SureVu safeguards buy- and sell-side firms from falling foul of mandatory penalties and buy-ins by extending Salerio’s proven exception management processing across the full settlement cycle. Communicating with custodians via real-time SWIFT messaging, the Operations Manager can have full oversight of any issues within the settlement chain, identifying potential penalties and buy-ins instantly.
With the added security of an automated pre-settlement process, the chances of a trade failing in the first instance are greatly reduced.
Automation of the full settlement lifecycle
With the introduction of SDR, the Operations team will need to proactively monitor the pre-matching of every trade. This will help ensure settlement and mitigate the risk of settlement failure and the associated mandatory penalties and buy-ins (and the resulting costly financial penalties and increased manual workload).
Pre-settlement and failed trade monitoring is still a manual process for large parts of the buy- and sell-sides. SureVu fully automates the process by communicating with your custodians via SWIFT messaging. By employing Salerio’s proven exception management processing, the user is rapidly presented with the most critical issues.
Avoidance of mandatory penalties and buy-ins
With the introduction of mandatory buy-ins even more pressure is being put on the buy-side firm to have a solid pre-settlement and fails management process.
SureVu is able to track the status of a trade from the issuing of a settlement instruction to a custodian until the physical settlement on the CSD. As the user is kept fully appraised of trade status through the full lifecycle there should be no reason why all trades cannot be matched before settlement date, in order to avoid the costly penalties of SDR.
Show that you are in control
One of the key learnings from the Lehman collapse was the lack of data concerning various exposures. In addition to managing your outstanding settlements and moving them toward completion, we can show you all your unsettled trade risk on one dashboard.
Get compliant and avoid penalties
Reduce settlement failure
Real-time notifications promote pro-active issues management.
Avoid buy-ins and fines
Comply with SDR requirements to avoid the financial and reputational damage of penalties.
Manage settlement risk
Manage exposure to unsettled trades at a counterparty, market or stock level.
Streamline and standardise trade settlement monitoring.
how it works
A standard model
SureVu is built on a standard model principle, with all functionality available to our entire client base. This means that all developments, enhancements and updates are merged into our standard model, enabling all clients to benefit from our ongoing innovation.
Our standard model also enables fast implementation times. A project can be complete in a matter of weeks for a standard installation, with predictable, low risk integration and minimised people costs. This enables fixed price implementations without the risk of long running projects (associated with solutions that have to be built or heavily configured before they reach a production state).
This light-touch cloud service delivers rapid onboarding and zero infrastructure costs. The technology is provided via a fully managed service with a simple and affordable cost structure. The subscription nature of the offering means you can potentially be up and running in a matter of days.
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