贸易失败. No matter how sophisticated your operations and processes, a portion of your transactions -- whether margin calls, equities or fixed income -- will likely fail to settle. Until now, many of these fails could be repaired and reprocessed with limited consequence. 但这种情况即将改变. Under new rules that will cover nearly all European trading activity, firms will soon pay a heavy price – in the form of daily fines and buy-ins – for trades that fail.
作为第一步, it is important to analyze your 帖子-trade processes and procedures to look for weak points, and then formulate an action plan to reduce those vulnerabilities and optimize your settlement arrangements.
The Central Securities Depositories Regulation’s (CSDR’s) settlement discipline regime – which covers trading in securities that settle at any of the 41 European CSDs – takes effect in February 2021. Organizations need to take the time now to improve their settlement processes before the consequences of inaction start to bite.
数据奠定了基础
一旦你评估了你的交易后流程, your analysis of failed settlements should look for processes that break down under pressure but perhaps only become apparent when you step back and look across an extended timeframe.
At the beginning of the 帖子-trade chain is data -- who, when and where. 这是, 参与交易各方的身份, the date the trade will settle and the account settlement instructions. In the middle of the chain you should ask, will it settle? Reporting systems that generate exception reports as early warnings are essential to answering this question. 然后，事情解决了吗? This information must be communicated to both counterparties as soon as possible to resolve the fail and avoid fines.
如果你的基础数据不完整或过时, or your reporting systems are clunky and non-transparent, or your exception processing is still being conducted manually, the chance is high that trades will fail and that your resolution and exception processing may be costly once the settlement discipline is enforced.
链条中的关键步骤
结算s fail for three primary reasons: standing settlement instructions (SSIs) are inaccurate or incomplete; securities have been sold but the party does not have them for delivery – or want to deliver them -- for various reasons; or the trade is not known (DK’d) or matched by the counterparty.
First, ask if your SSIs are inaccurate or missing data. Dig down to see if you’re using out-of-date standing settlement instructions or account information. 或者你用错了SSI.
第二个, if you’re matched with good instructions but the securities weren’t delivered, it is important to locate the securities and determine why.
最后, if the settlement failed because the trade was not matched or known by your counterparty, find out if the trade was confirmed in a timely fashion. 如果没有，为什么没有呢?
用有针对性的解决方案进行重组
Once you’ve pinpointed the likely sources of fails and identified any shortcomings, you can address them by strengthening your 帖子-trade processing chain with a variety of automation tools.
自动匹配和确认: Switching from manual to automated processes for matching and confirmation can be a firm’s single biggest game-changer in fails prevention.
除了增加效率和透明度, today’s automated solutions include features that improve data management, reinforce internal audit protocols and bolster risk management. 存’s Central Trade Manager (中医™) is considered the industry leader in affirmation and confirmation for equities and fixed income trades, while 存’s Margin Transit Utility (MTU) automates margin settlements for products like OTC derivatives.
锁定结算指令: Use of SSIs ensures that trade settlements, margin and payments are sent to the correct accounts. 因为ssi变化频繁, make sure your firm has a way to ensure it utilizes up-to-date account instructions. Accurate SSIs can also facilitate timely confirmations. 存的警报®数据库, ssi的行业标准, 已经帮助近200万个ssi实现了自动化.
强化底层数据: 法律 entity identifier utilities ensure that the data on trading parties is standardized. Processing systems with built-in reporting can identify failed settlements in as close to real time as you can get. 存’s solutions can also flag trade exceptions and help repair them. MTU, 存 Exception Manager (DXM) and the GMEI® utility provide these capabilities.
The high trade volumes we experienced in March and April, 随着Covid-19大流行的蔓延, flashed a warning signal: during times of market volatility, 我们可以预期贸易不会成倍增长. With the imminent launch of CSDR settlement discipline regime, the only way firms can get ahead of the trade-fail penalty curve is to upgrade their operations. The key to these upgrades is the automation of the various components of the 帖子-trade lifecycle. 好消息是, automation solutions are readily available and adaptable to a firm’s particular needs.