Bloomberg has launched a new settlement-exception management tool, to support the Central Securities Depositories Regulation (CSDR) ahead of its February 2022 implementation deadline.
CSDR will impact both buy- and sellside firms and requires that trade exceptions be resolved quickly to avoid a complex schedule of penalties.
The FailStation workflow tools facilitates customers’ CSDR compliance through a combination of automated settlement exception management tools and Bloomberg CSDR data.
Clients will be able prioritise fails based off penalty size, isolate CSDR eligible transactions, and send automatic notifications to internal and external stakeholders and initiate the resolution process, thus augmenting successful settlement rates and minimising penalties
FailStation is natively integrated with Bloomberg AIM, a l order management system, and forms part of a consolidated post-trade operations package where an end-to-end experience links operational efficiency with an optimised front office workflow.
The company said that bringing greater transparency to each step of the transaction lifecycle through a unified post-trade workflow, and highlighting settlement exceptions associated with CSDR penalties, delivers a holistic post-trade offering.
In addition, the processing of buy-ins, cancellations, and custodian communications associated with CSDR can be executed by utilising AIM’s direct custody connectivity.
The solution connects and normalises disparate data from more than 150 custodian banks, prime and executing brokers to create a comprehensive post-trade network.
“Meeting the requirements of regulations like CSDR can quickly become a cumbersome and often expensive burden for firms,” said Virginie O’Shea, founder & CEO of Firebrand Research.
“Solutions that can help customers find transparency in their CSDR compliance processes while also managing costs associated with settlement fails can be a critical tool for success ahead of the February 2022 deadline,”
Ian Peckett, Global Head of Buy-Side Product at Bloomberg, added. “Providing clients with robust post-trade solutions natively integrated into our OMS is an important part of our end-to-end buy-side offering to help them navigate the complexity of CSDR without impacting their existing front office workflow,”
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