Euroclear has today made SetClaim, its capital markets payments claims processing service, available to clients. 

SetClaim’s launch reflects Euroclear’s continued and growing relevance to its clients; helping capital markets operations solve fundamental issues in areas facing increased regulatory scrutiny.  SetClaim addresses the challenges of managing the many payment obligations that arise between broker dealers, custodians and other financial firms as a result of their day to day business.

SetClaim differs to traditional cash management solutions in that it focuses solely on the operational flow of the capital markets’ back office, drawing on Euroclear’s unique network and expertise in supporting highly sensitive financial transactions. SetClaim’s wider benefits to users include operational efficiency, client service enhancement, funding optimisation, demonstrable control and transparency.

Angus Scott, Head of Product Strategy at Euroclear, commented: “We estimate that the annual cost of managing coupons and dividend payments claims alone exceeds US$150 million, added to which hundreds of thousands of other payment claims are generated across mortgage pricing resets, fees and commissions, and tax processes. Yet, such items are today addressed by using manual, bilateral processes, the inefficiency of which is compounded by payment reconciliation challenges.” 

Scott continued: “SetClaim is set to reduce firms’ operating and funding costs, and improve capital efficiency and operational control – all much sought after across today’s capital markets operations.”   
Using a proprietary matching system developed in collaboration with Merit Software, a leading provider of Claims Management solutions to the financial sector, SetClaim allows users to efficiently manage their claims lifecycle with a full audit trail. Connecting through either web-based GUIs or STP interfaces, both payables and receivables can be uploaded automatically to the central venue which notifies counterparties of claim status. The status of each item is tracked and can be automatically matched, with suggested matching supported. Any unresolved or disputed items are identified and assigned reasons. Users can receive shared payment references at bulk, net or individual item levels, enabling payees to reconcile amounts received to respective claims. 

Kerril Burke, Chief Executive of Merit Software, said: “We are delighted to add our expertise in operations payables and receivables to Euroclear’s unrivalled reputation as the leading provider of secure, reliable financial infrastructure. Until now, Claims Management has been the land that STP forgot, but we are continuing to change that.”