Deutsche Bank Launches Early Warning System for Settlement Delays

Deutsche Bank has launched a new service providing early warnings to traders around settlement delays and potential failures in securities transactions. The new service is powered by Elastic, a search technology firm, where the bank will use its machine learning and anomaly detection features, to enable clients to avoid hefty financial penalties under the upcoming implementation of the Settlement Discipline Regime (SDR) in February 2022. Elastic’s machine learning technologies will enable Deutsche Bank’s settlement platform to move from real-time to forward-looking, and will proactively detect the in-flight transactions that require actions and alert the bank’s teams before the transactions encounter issues. Elastic’s anomaly detection feature also takes into account seasonality, market variation and other changing dynamics to provide the bank’s operational teams with dashboards and action queues that are driven by a large set of factors that would be too broad and complex to manually process. The machine learning algorithms will also complement the development of several dashboards covering liquidity, settlement performance, and risk and control.