Revolutionizing Clearing and Settlement Efficiency for Global Investment Bank

As financial markets adapt to new T+1 settlement regulations, the need for faster trade settlements has become critical. T+1 settlements ensure finalization of trades one business day after execution, reducing counterparty risk, increasing liquidity, and improving operational efficiency. The shift has reshaped market dynamics, driving the industry toward automation and standardization of processes while prompting global system overhauls. It has further led financial institutions to look for solutions that ensure compliance and optimize operations.

This case study details how Infosys partnered with a leading investment bank to streamline and speed up their clearing and settlement processes. By leveraging automation, the project ensured compliance with T+1 regulations and transformed the client's global operational efficiency.

About the Client

The client is a prominent global investment banking and financial services company headquartered in Europe. Providing wealth management, asset management, and investment banking services, the bank caters to customers worldwide and holds a significant position in the financial industry.

Challenges

The client faced several challenges in meeting T+1 settlement requirements. The key issues were:

• Manual and legacy settlement processes lead to inefficiencies and a higher risk of operational errors
• Reliance on non-standard internal applications and processes requiring extensive manual interventions, further complicating and delaying settlements

Infosys Solutions

Infosys developed a customized solution to address the client's challenges. Key components included automated functionalities for managing inquiries, controls, and uploads. The solution implemented end-to-end automation of settlement processes, such as intra-day balance, nomination control, obligation, settlement, and stock movement. Moreover, the solution incorporated straight-through processing (STP) protocols to ensure seamless data flow, along with migration of non-standard internal applications to cloud infrastructure. This comprehensive approach minimized manual interventions, improved STP rates, and ensured smooth compliance with T+1 regulations.

Business Benefits

• 80% reduction in manual efforts related to operational activities in the settlement process
• Streamlined trade processing architecture through standardized and automated processes, enhancing operational performance
• Seamless compliance with the T+1 deadline through the implementation of STP protocols and the migration of non-standard internal applications to the cloud

This success story demonstrates how Infosys and the client achieved transformative automation and compliance, boosting efficiency and meeting T+1 requirements.

Get in Touch

Looking to streamline your trading, clearing, and settlement processes while staying ahead of evolving regulatory requirements? Contact Infosys today to learn about our tailored frameworks and AI-led solutions that can help your organization stay compliant and efficient.