Solutions provider Pirum Systems launches what it calls a CSDR fails report. Using it, securities finance companies could measure how they will be impacted by the penalties for settlement fails that will be introduced under CSDR in February 2021.

In a press release, Pirum says that its clients – a group whose total size is not described by measure – could be facing fails fines of 80-110 million euro per year. When the costs for management are added, both for fails and fines, the figure triples to about 300 million euro.

The analysis serves as ammunition to Pirum Systems’ marketing of its main products, which serve to enable e.g. “real-time pre- and post-trade reconciliation and process automation across their securities financing business, including securities lending, repo and collateral postings”. It is beefing up its “SSI enrichment services”, to reduce fails caused by settlement instructions mis-match.

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“We’re seeing an acceleration in the rollout of our real-time post-trade services to help firms maximise the benefits of increased STP rates, whilst reducing fails,” says Phil Morgan, COO at Pirum Systems.