Improving Settlement Rates by Ignoring Them
Data is often used as evidence that tips the decision one way or another. But does data always give us the right answer, or does it simply tell us what we want to hear? The power of data lies in its ability to identify systemic issues and to help the industry intervene to reduce or minimize the ripple effect.
There’s a common industry expression that “every trade ends in settlement.” We even have a metric — settlement fail rate — to measure the number of trades that fail to settle. But as an isolated metric it can be quite misleading. While settlement fail rate is a very important metric, it is just the tip of the iceberg as to what is causing it.
In this video Artem Korenyuk, DTCC Executive Director, Digital Strategy & Platform Management, explains why we need to reverse engineer the settlement fail rate metric to reveal more of what’s hidden underneath the iceberg.