Meritsoft unveils new AI-enabled trade monitoring and exception resolution tool

Meritsoft, a Cognizant company, has today announced the launch of its Trade Tracking and Exception Manager (TTEM) solution, offering financial institutions deep insights into their settlement operations and enabling them to improve settlement efficiency rates.

A fully cross-asset class platform, TTEM enables market participants to realize greater operational resilience and efficiency, reduce settlement failure rates, and enhance client servicing and reporting. It provides near real-time trade matching and settlement status updates allowing operations teams to quickly identify trades that look set to fail and intervene to ensure they match prior to market deadlines. Fully customizable operational dashboards show settlement risk profiling and the latest RAG status based on pre-defined priorities and risk profiles. Providing the ability to prioritize trades at risk of failure, operations teams can focus exception management activities on those trades where failure would have the greatest impact. Settlement efficiency reporting against internal and external benchmarks across clients, counterparties and markets enables operations teams to determine where and why fails are most commonly occurring.

The TTEM solution has an additional predictive artificial intelligence module that utilizes advanced machine learning algorithms. At trade ingestion the AI models instantly predict the settlement status at the future market deadline. The predictive data is combined with the TTEM risk profiling data to generate enhanced dashboarding for settlement risk and operational prioritization. Additionally, the predictive data feeds into configurable automated workflows to drive operational efficiencies such as exception management and counterparty communication. Users can provide their clients with the ability to manage oversight of their trade activity through a client portal.

TTEM utilizes the technological infrastructure of Meritsoft’s recently launched next-generation technology platform. Built with a cloud-ready, API-first design, the new platform permits seamless adaptability and interoperability of workflows with the capacity to support high transactional volume in real-time.

From a settlement efficiency perspective, the combination of detailed trade matching and settlement status data with powerful artificial intelligence tools provides operations and front office teams with evermore accurate predictive insights into which counterparties are failing to settle, when and for what reason.

With the launch of this new tool, Meritsoft is providing market participants with an end-to-end solution for managing the trade settlement lifecycle and achieving continual settlement performance enhancements. Furthermore, TTEM can be used in conjunction with Meritsoft’s CSDR Manager to seamlessly manage the penalties processing requirements for in-scope trades, and with the firm’s Interest Claims Management solution to enable fast issuance of interest claims for failed trades.

This will help ensure firms are future-proofed against market structure and regulatory changes, including the upcoming transition to T+1 in North America, while also helping to enhance resilience amid periods of elevated market stress.

“Market participants across the globe face a growing list of challenges when it comes to their trade settlement operations, from shorter settlement cycles to heightened operational costs and resource limitations. Faced with CSDR penalties, T+1 settlement timeframes and rising levels of interest claims, it is imperative that companies move quickly to streamline their settlement operations and trade failure resolution processes to minimize costs. Those that fail to do so will struggle to remain competitive in an increasingly complex and fast-changing trading environment.”

Daniel Carpenter

CEO, Meritsoft

To learn more, please get in touch MeritsoftCapMarkets@Cognizant.com.