Clearstream releases CSDR settlement efficiency rates for 2024
Clearstream has released the annual CSDR settlement efficiency rates for 2024. The rates show significant improvements, with both “by value” and “by volume” settlement fail rates further decreasing compared to 2023.
Clearstream Banking S.A. client settlement efficiency 2024:
- By value: 98% (+55% vs 2023)
By volume: 94% (+31%)
In absolute terms, the number of failed settlement instructions declined by almost 14% despite the total instructions volume increasing by 25%.
Clearstream Banking AG client settlement efficiency 20241:
By value: 97% (+39% vs 2023)
By volume: 93% (stable)
In absolute terms, the number of failed settlement instructions increased by 13%, largely in line with the total instructions volume.
The reports for 2024 are accessible via the Settlement Discipline Regime section of this website.
Together with our clients, we are pleased with the continuous improvements in overall settlement fails rates in 2024 compared to the data from 2023 and 2022.
We are committed to fully support our clients in achieving best possible settlement efficiency, for example, by improving overall securities liquidity in the market. However, as a CSD, we have limited means to directly influence the settlement efficiency of our clients. While it is difficult for Clearstream to assess the detailed reasons why instructions actually fail, we offer a series of analytics tools to explore main fail reasons and provide supportive fails coverage and data solutions to improve performance.
Enhancing settlement discipline
The introduction of the Settlement Discipline Regime (SDR) component of the Central Securities Depositories Regulation (CSDR) on 1 February 2022 has reinforced demand to borrow securities for fails coverage purposes. It has also motivated firms to review their operational cultures, changing how they monitor and manage potential fails – by adopting an intra-day approach to their fails coverage.
Clearstream expects the refinement of the SDR via the CSDR Refit to potentially eliminate, among others, “non-trading related” settlement instructions from the penalties and fails reporting scope. This will help to focus on transactions that represent true financial or counterparty settlement risks.
In addition, Clearstream is actively involved in the industry’s preparations for the shortening of the settlement cycle in the EU (“T+1”, that is, settlement on the business day after the trade date) that is expected to become effective as of 11 October 2027. In this regard, relevant measures are identified and implemented to limit negative impacts on the clients’ settlement efficiency before the settlement cycle is shortened.
Optimise your settlement efficiency
Clearstream’s Settlement Prediction tool calculates the probability that a specific instruction will settle on time, based on the transaction specificities and historic data feed. Clients can leverage these predictions throughout the day to gain additional validation and to take appropriate actions to prevent any potential settlement fails.
The Settlement Dashboard also helps clients to manage their settlement activity.