Clearstream Enhances Settlement Prediction Tool

The move is expected to help clients better manage settlement risks and prepare for the transition to T+1 settlement cycles.

The updated tool uses artificial intelligence to forecast the likelihood of timely settlement and estimate potential penalty costs. 

The firm explained that by analysing transaction details and historical settlement patterns, it can identify at-risk instructions up to four business days in advance, allowing users to take early action.

Clearstream, part of Deutsche Börse Group, stated that the enhancements will enable clients to mitigate risk, reduce exposure to penalties, and enhance operational efficiency. 

The tool enables proactive risk management by flagging potential settlement failures ahead of time and providing predictive insights into high-risk transactions.

According to the company, the improved tool also allows clients to optimise resource allocation and prioritise actions across all settlement instructions. 

Clearstream said the greater visibility will be crucial as the industry transitions to accelerated settlement timelines under T+1 regimes.

The release forms part of Clearstream’s broader strategy to support clients navigating regulatory and operational change. 

The firm said the Settlement Prediction Tool will provide “enhanced visibility and control” as institutions prepare for tighter settlement deadlines and growing demands on post-trade infrastructure.