Institution(s): ISITC Europe CIC, London Institute of Banking and Finance, Ulster University Business School

Policy makers are paying closer attention to settlement risk – but an increasing share of FX transactions are settled without payment-versus-payment (PvP) protection.

As the costs of settlement fails rise, the industry is increasingly using the Unique Transaction Identifier (UTI) to enhance end-to-end transparency across the securities settlement chain.

The securities industry has made big leaps in efficiency over past decades, yet there are areas where the settlement journey still faces friction. In the first of three articles, Swift’s Head of Securities Strategy, Vikesh Patel, sets out a vision for the future of frictionless post-trade settlement.

Order, change or terminate your subscription to CLS Settlement Services

Order, change or terminate your subscription to CLS Settlement Services

Order, change or terminate your subscription to CLS Settlement Services

Securities settlement fails create both added costs and operational risks for trading counterparties. These challenges are only going to intensify under CSDR’s Settlement Discipline Regime and the decision by certain markets to adopt T+1. Better transparency on securities transactions will be essential if we are to reduce settlement fails moving forward.

We’re working across the securities industry to solve post-trade challenges, together. Learn how our collaborative platform approach helps you reduce settlement fails, increase operational efficiency and opens opportunities for innovation.

Swift GPI will help banks to better manage the settlement risk for payments not settling via a PVP process.