Settlement Market Practices: A Legacy of Failures
Report Summary
Settlement Market Practices: A Legacy of Failures
Financial institutions are increasingly focused on settlement efficiency; incoming market structure changes will add incentives to this end.
London, 17 May 2017 – The securities settlement process may appear relatively straightforward, but national nuances and data discrepancies have given rise to numerous challenges for financial institutions operating across the globe. Settlement failures are a fact of life, but how many of these failures are caused by issues that could be more efficiently tackled and resolved ahead of time?
This research examines the challenges and opportunities related to settlement failures and post-trade securities messaging market practice adoption, including data quality and standardization. Based on late 2016 and early 2017 telephone interviews with 17 market participants in settlement operations functions at 15 capital markets firms and market infrastructure providers that are active in the global financial markets, it highlights settlement operations teams’ priorities around these challenges and technology’s role in their efforts.
This 33-page Impact Report contains 23 figures. Clients of Aite Group’s Institutional Securities & Investments service can download this report, the corresponding charts, and the Executive Impact Deck.
This report mentions Bank of Greece Securities Settlement System, Centrálny depozitár cenných papierov SR, Clearstream Banking, Depozitarul Central, DTCC, Eesti Väärtpaberikeskus, Euroclear, Iberclear, Interbolsa, KDD - Centralna klirinško depotna družba, KELER, Latvijas Centrālais depozitārijs, Lietuvos centrinis vertybinių popierių depozitoriumas, LuxCSD, Malta Stock Exchange, Monte Titoli, National Bank of Belgium Securities Settlement System, OeKB CSD, SIX SIS, VP LUX, and VP Securities A/S.