corfinancial, a leading provider of specialist software and services to the financial services sector, has launched SureVu to help buy- and sell-side firms avoid the cost of failed trades.
SureVu is a response to upcoming changes to the Central Securities Depositories Regulation (CSDR), which requires trading venues and investment firms established in the EU to improve settlement discipline by 1 February 2021. These enhancements, known as the Settlement Discipline Regime (SDR), mean that where a settlement fail occurs, depositories must impose cash penalties on failing participants as well as compulsory buy-ins after a short time.
Available as a cloud-based, fully managed service, SureVu is a consolidated solution for enforcing settlement discipline within investment managers, broker-dealers, asset and securities services firms, and custodians in order to be SDR compliant.
In the post-SDR environment it will be even more critical to closely monitor trades through the settlement cycle, including the early identification of possible reasons for failure. This will allow proactive actions to be taken to deal with problem trades and prevent actual failure. In this future world of penalties and mandatory buy-ins, it will also be critical to have a timely and reliable source of evidence to prove that a firm is being the responsible market participant that SDR demands.
In order to safely navigate these new requirements, Operations Managers will have no choice but to automate in order to bring the process under control, maintain operational efficiency and mitigate the buy-in risk down to the smallest possible margin. SureVu’s SDR capability can be fully enabled in just weeks from purchase, providing a fast and cost-effective solution for full SDR compliance.
Presented in an easy-to-navigate web-based dashboard, SureVu manages trade exposure on a near real-time basis, making users fully aware of current overall settlement exposure and enabling them to easily drill down into the detail of individual trades.
“The fact is that under SDR, every failed trade will have a price tag,” says Bruce Hobson, CEO at corfinancial. “SureVu safeguards buy- and sell-side firms from falling foul of mandatory buy-ins by providing exception management processing across the full settlement cycle.”
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