DTCC processes 10 million SSIs as part of industry effort to minimise settlement failures
The landmark figure is part of an industry effort to significantly improve securities settlement efficiency rates ahead of the Settle Discipline Regime (SDR).
The landmark figure is part of an industry effort to significantly improve securities settlement efficiency rates ahead of the Settle Discipline Regime (SDR).
Deutsche Boerse, Deutsche Bundesbank and Germany’s Finance Agency conduct DLT-based securities settlement in central bank money.
Market participants will be conscious of European settlement rates with incoming regulation on the horizon which penalises fails.
Many investment banks have had to scramble to update their back-office operations in order to prevent a potential spike of failed trades.
A new white paper highlights the benefits of moving to a T+1 settlement cycle and details plans to achieve this in two years.
The comments were made before the US House of Representatives’ Committee of Financial Services, which discussed the increased volatility from retail traders in January.
As the consultation period for Europe’s Settlement Discipline Regime concludes, industry associations again step up calls for the removal of mandatory buy-ins.
Following the launch of Project Ion to explore the possibility of a T+0 settlement cycle, its research found the initiative is currently not applicable to the market.
BNY Mellon predicts its new initiative will help traders predict approximately 40% of settlement failures in Fed-eligible securities.
The development follows similar initiatives involving Euroclear and local market infrastructures in both China and Japan.