SaaS platform for post trade processing
Challenge
- Standing Settlement Instructions (SSI) are critical for the settlement of security trades
- SSIs cause approximately 30% of settlement failings due to erroneous or outdated SSIs, thereby causing costs and risks for the parties involved in the trade
- If a trade fails to settle due to missing security or cash payment, it is subject to a ‘late settlement penalty’ levied by the Settlement Discipline Regime (SDR). These penalties have reached the hundreds of millions since it came into effect in February 2022
Solution
- SSImple is a SaaS DLT platform that aims to fundamentally change the way Standing Settlement Instructions are stored, shared and enriched across the financial services industry
- Management of SSIs across securities, cash and FX markets to avoid penalties, reduce risk and maximize efficiency
- Includes a robust industry rule engine to ensure multi-asset class SSIs are entered correctly, thereby mitigating risk, creating efficiencies, and reducing costs for custodians/prime brokers, buy-side/outsourcer firms, broker-dealers, and third parties
Why Corda?
- Corda was chosen because of its built-in peer-to-peer workflow process automation between entities and its ability to integrate with traditional finance systems
Results
- Custodians/prime brokers can automate their SSI delivery process to their buy-side clients
- Buy-side/outsourcer firms can receive automated SSIs as well as permission broker-dealers and third parties access to their SSIs
- Broker-dealers can receive automated SSIs from their buy-side clients via Excel or an easy-to-use Application Programming Interface (API), and third parties can connect and enrich SSIs from their buy-side and sell-side clients
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