Euroclear has officially launched SetClaim, a service that allows banks and brokers to automatically match receivables and payables from multiple counterparties at any stage of the claims lifecycle.
Euroclear says that users can reduce the costs and risks associated with manual reconciliation while benefiting from exception-based rules.
“We estimate that the annual cost of managing coupons and dividend payments claims alone exceeds US$150m, added to which hundreds of thousands of other payment claims are generated across mortgage pricing resets, fees and commissions, and tax processes,” said Angus Scott, head of product strategy.
“Yet such items are today addressed by using manual, bilateral processes, the inefficiency of which is compounded by payment reconciliation challenges. SetClaim is set to reduce firms’ operating and funding costs, and improve capital efficiency and operational control – all much sought after across today’s capital market operations.”
The service allows users to manage their claims lifecycle with a full audit trail. Connecting through either web-based graphical user interfaces (GUIs) or straight-through processing (STP) interfaces, both payables and receivables can be uploaded automatically to the central venue which notifies counterparties of claim status. The status of each item is tracked and can be automatically matched, with suggested matching supported.
Data from S&P Global Market Intelligence suggest that the German lender is struggling to meet capital and earnings figures.
Sentiment in the financial services sector deteriorated in the three months to September, as firms digested the challenges of lower interest rates and the uncertainty caused by the vote to leave the European Union (EU), according to the latest CBI/PwC Financial Services Survey.
However, a London summit on the industry’s introduction of the technology cautions that testing and acceptance are still at an early stage and firms should proceed with caution.
The proposals of both US presidential candidates could shake up operating conditions in several sectors, reports the credit ratings agency.