The service is a bid to help firms deal with compressed T+1 timelines for settlement.
Clearstream Banking AG, the Central Securities Depository (CSD), which provides post-trade services for securities in Germany, is launching a new, automated Smart Realignment Service to manage settlement fails.
The service, available in December 2025, aims to help firms manage compressed T+1 settlement timelines. Europe and the U.K. are both moving to shorter settlement cycles on Oct. 11, 2027. According to officials from Clearstream, a wholly owned subsidiary of the larger Clearstream and Deutsche Börse Group, the name of the game is to increase settlement efficiency.
The tool could also potentially help to decrease Central Securities Depositories Regulation (CSDR) penalties by reducing the number of failing delivery instructions due to a lack of securities on or after the intended settlement date.
When a settlement fail occurs in an eligible security, the tool automatically generates realignment instructions to move available “held-free” securities from the client’s source accounts to the target accounts lacking the securities, officials say. The service can cover all eligible securities or be limited to Eurex “special Repo” activity.
The service can also identify failing instructions based on market scope, security eligibility, settlement type, and intended settlement date. Transfers prioritize accounts within the same Clearstream entity; if balances are insufficient, cross-CSD transfers occur and realignment windows are scheduled throughout the day to ensure timely settlement.
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