Robust, Scalable and Customized Settlement Services Minimizing Operational and Financial Risk

Settlements

​All financial services companies run settlement or payment functions in some form or shape. eClerx provides comprehensive Settlement services across markets, products, and geographies for both OTC and Cash trades. The key features of our service are:

  • Timely reconciliation and settlement of cash flows on or before value date for various types of clients (brokers, banks, hedge funds
  • Minimized operational risk by rectifying discrepant cash flows and settling with good value
  • Matching various ledger account pools to ensure that books balance and breaks are escalated in a timely fashion
  • Managing and resolving payment fails and cash breaks post value date​

Challenges

  • ​Interest cost – Failed or late settlements may incur significant interest costs
  • Large transaction volumes coupled with real-time processing adds an element of urgency to every transaction
  • Seasonal spikes – ‘Triple Witching’ causes quarterly spike in volume for OTC and Cash products
  • Multi-region, multi-market, multi-product scope
  • High regulatory oversight

Solutions

  • Auto-generate affirmation email requests using mailbox management tools, resulting in reduced manual errors and increased control
  • eClerx built intra-day payment and workflow tools for matching, allocating and monitoring payments and security positions on a real-time basis
  • Effective use of knowledge management to create cross-product and cross-platform trained resources to manage product and regional complexity
  • Created reporting dashboards to ensure timely settlement of high risk cash flows

Benefits

  • Extremely low fail rate (<1%) for cash flows between financial institutions which are mutual clients of eClerx
  • eClerx run settlement operations consistently deliver higher industry rankings on operational parameters as well as Z-yen scores, as compared to captive and self-managed operations
  • Creation of transparent reporting and oversight framework
  • eClerx domain expertise in Settlements has allowed the banks to focus on core activities
  • Consistently delivered cost-savings and value that is over and above cost-arbitrage