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Euroclear’s SetClaim to transform payment claims management

SetClaim offers much-sought efficiency, transparency, client service and funding optimisation to the capital markets’ back office

Brussels and London, 10 June 2015 – 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.”

Note to editors

About Merit Software

Founded in 2000, Merit Software is focused on creating industry leading solutions that support our clients in identifying, calculating and managing the many types of Operations receivables and payables that arise in a controlled, efficient and automated manner.

Merit Software’s solutions are used by Investment banks, Brokers, Asset Managers, Hedge funds and other financial institutions. In a recent survey of banks, four of the top five global financial firms use Merit Software’s Claim Manager solution.

Merit Software’s solutions particularly focus on meeting client objectives around risk reduction, increasing funding efficiency, improving straight through processing, customer service enhancement and meeting increasing regulatory and tax reporting requirements.

For more information, please visit www.merit-soft.com

About Euroclear

Euroclear is one of the world’s largest providers of domestic and cross-border settlement and related services for bond, equity, ETF and mutual fund transactions with offices in 15 countries across the globe and links to 46 international markets.

Euroclear is a proven, resilient capital market infrastructure committed to delivering risk-mitigation, automation and efficiency at scale for its global client franchise which includes over 100 central banks and supranationals.
The Euroclear group includes Euroclear Bank - which is rated AA+ by Fitch Ratings and AA by Standard & Poor’s - as well as Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden and Euroclear UK & Ireland. The group settles the equivalent of $682 trillion(€634 trillion) in securities transactions annually representing 182 million domestic and cross-border transactions. The group holds $900 billion (€833 billion) in average daily collateral outstandings, and over $28 trillion (€26 trillion) in assets for clients.

For more information please visit About us or follow us on Twitter @EuroclearGroup or on LinkedIn.

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