Bank / Credit Union

Deutsche Bank system gives early warnings for settlement fails

Photo provided by iStock

October 9, 2020

Deutsche Bank has introduced technology from Elastic that will provide clients with an early warning of likely settlement delays for in-flight transactions, according to a press release.

Earlier this year, Deutsche Bank launched its current real-time settlement service in Euronext, Germany and the U.K., using the Elastic platform. The platform provides a real-time view of issues delaying a transaction settlement. Traditional platforms only provide a retrospective view of settlement delays.

The new ML-enhanced service considers seasonality, market variation and other changing dynamics to proactively detect in-flight transactions requiring action and alerts the bank before the transactions encounter delays.

Set for launch in early 2021, the new service will enable the bank's clients to avoid financial penalties under the upcoming implementation of the new Central Securities Depositories Regulation in 2021.

"Our aim is to deliver a real shift in how markets view exception processing and to bring pre-trade performance to our post-trade operations," Christopher Daniels, director, data products, securities services at Deutsche Bank, said in the release. "We can now detect transactions in real-time that previously would not be flagged as at risk, and divert our attention from the transactions that ostensibly appear to be at risk, but upon historical analysis have always matched in time to settle."