Clearstream releases CSDR settlement efficiency rates for 2023
Clearstream has released the annual CSDR settlement efficiency rates for 2023. The rates show significant improvements, with both “by value” and “by volume” settlement fail rates decreasing by up to 90% compared to 2022.
Clearstream Banking S.A. client settlement efficiency 2023:
- by value: 95%
by volume: 91%
Clearstream Banking AG client settlement efficiency 2023:
by value: 95%
by volume: 92%
Together with our clients, we are pleased about the remarkable improvements of the overall settlement fails rates in 2023 compared to 2022 data.
Clearstream is committed to fully support clients in achieving best possible settlement efficiency, e.g. by improving overall securities liquidity in the market. As a CSD, we have however limited means to directly influence the settlement efficiency of our clients. While it is difficult for Clearstream to assess the detailed reasons why instructions are actually failing, we offer a series of analytics to explore main fail reasons and provide supportive fails coverage and data solutions to improve performance.
Settlement discipline
The introduction of the Settlement Discipline Regime component of the Central Securities Depositories Regulation (CSDR) on 1 February 2022 has reinforced demand to borrow securities for fails coverage purposes. It has also motivated firms to review their operational cultures, changing how they monitor and manage potential fails – by adopting an intraday approach to their fails coverage.
Optimise your settlement efficiency
Clearstream's Settlement Prediction tool calculates the probability that a specific instruction will settle on time, based on the transaction specificities and historic data feed. Clients can leverage these predictions throughout the day to gain additional validation and to take appropriate actions to prevent any potential settlement fails.