Euroclear Launches Processing Service

Euroclear has launched a capital markets payments claims processing service.

The service, called SetClaim, addresses the challenges of managing the many payment obligations that arise between broker dealers, custodians and other financial firms as a result of their day-to-day business.

SetClaim focuses solely on the operational flow of the capital markets’ back office. The services’ wider benefits to users include operational efficiency, client service enhancement, funding optimisation, demonstrable control and transparency.

Angus Scott, head of Product Strategy at Euroclear, commented: “We estimate that the annual cost of managing coupons and dividend payments claims alone exceeds $150 million, added to which hundreds of thousands of other payment claims are generated across mortgage pricing resets, fees and commissions, and tax processes. Yet, such items are today addressed by using manual, bilateral processes, the inefficiency of which is compounded by payment reconciliation challenges.”

Scott continued: “SetClaim is set to reduce firms’ operating and funding costs, and improve capital efficiency and operational control – all much sought after across today’s capital markets operations.”

Using a proprietary matching system developed in collaboration with Merit Software, a provider of claims management solutions to the financial sector, SetClaim allows users to efficiently manage their claims lifecycle with a full audit trail. Connecting through either web-based GUIs or STP interfaces, both payables and receivables can be uploaded automatically to the central venue which notifies counterparties of claim status. The status of each item is tracked and can be automatically matched, with suggested matching supported. Any unresolved or disputed items are identified and assigned reasons. Users can receive shared payment references at bulk, net or individual item levels, enabling payees to reconcile amounts received to respective claims.