Euronext Securities transforms data management with innovative dashboards to enhance settlement efficiency 

Euronext Securities is currently deploying three “Italian crafted” dashboards that will equip clients with a detailed overview of their settlement efficiency and penalty data in real time. These dashboards are just the first in a series of data-based initiatives created by Euronext Securities Milan that will help clients across all Euronext CSDs gain actionable insights to unlock the full potential of their post-trade activities.

Pooling expertise for the benefit of Euronext Securities’ clients everywhere

From Porto to Oslo, Euronext’s network of Central Securities Depositories (CSDs) have a long history of data mining. Even prior to the creation of Euronext Securities, each CSD worked with its respective clients to unlock their data’s potential, and create value-adding services that solved their problems. Now, by uniting the efforts of the individual CSDs, Euronext Securities can offer clients a common dashboard across all markets.

We are expanding the common data lake technology for all Euronext CSDs, to present data in an interactive dashboard, which clients can use to monitor and understand their post-trade operations. The interface is the same across CSDs, and each CSD’s data is stored separately, so as to avoid overlapping information between CSDs,

Explains Christian Alexander Viken, Head of Data & Analytics at Euronext Securities. “By giving our clients a common way to access their data, they can have a uniform experience wherever they do business with us, be it in Italy, Denmark, Norway or Portugal, and access their data from a single dashboard.”

Putting settlement data at clients’ fingertips

The first dashboard to be rolled out to all CSD clients is the Settlement Efficiency dashboard, an area that has been a hot topic across Europe in recent years. “Our aim with the settlement dashboard is to address our clients’ specific needs,” explains Giovanni Costantini, Senior Sales and Relationship Manager at Euronext Securities Milan. “We want to give them the information that will help them identify improvement areas in their settlement process and then give them the tools to make these improvements.” Clients can see information regarding their assets under custody, the split between asset classes and their ranking and market share within the CSD. If they are also clients in other Euronext CSDs, they can see the same information in the same format for each CSD where they do business.

Keeping an eye on penalties

With the introduction of the CSDR penalty regime in the Spring of 2022, penalty-related data has also been an area of interest for issuers and financial institutions. The new Penalty Dashboard will help clients to both monitor their own performance in this area and benchmark it against the market. “Using the dashboard, clients can identify settlement issues based on single ISINs, operations or operating days. They can also measure operational efficiency and identify areas for potential savings,” says Fernando Gilardi, Head of Data Analytics & Data Strategy - Product Development at Euronext Securities Milan.

Using data to ensure and optimise liquidity

Liquidity is another area of interest for financial institutions. Euronext Securities’ new Liquidity Dashboard service – currently in the prototype phase – will offer clients unprecedented insight into their current and future liquidity needs. “This dashboard allows clients to predict their liquidity, so they can apply post-trade services more effectively,” explains Enrico Papalini,

Head of Software Development and Analysis at Euronext Securities Milan.

Clients can easily integrate liquidity information into their accounting and treasury systems. Using this real-time information, they can also reconcile cash positions, optimise their liquidity and improve their collateral management. The dashboard also enables clients to take proactive decisions, based on its predictive modelling.

Our clients need to monitor their liquidity position, particularly intraday positions. At the same time, they need to understand their liquidity needs for the days to come. We want to provide them with a dashboard that both informs them about their liquidity position at any given point in time, and that also can help them to anticipate their future liquidity needs,

Giovanni Costantini says.

Partnership with leading data science university fuels innovation

To make this form of predictive forecasting possible, the Euronext Securities data services team uses predictive models based on machine learning and artificial intelligence. They benefit from the company’s long-standing partnership with the University of Milan, an institution renowned for its data science department. “Every year we host a data lab, where we have  student interns from the university’s Data Science Department join our data science team. They work together with our in-house data scientists to produce models that can forecast liquidity needs using AI and machine learning algorithms.”

Even though clients will be viewing predictive models, they can rely on an accurate forecast estimate of available liquidity. Enrico Papalini explains why. “Thanks to the technical infrastructure we have put in place, we can launch an enormous amount of training models simultaneously, analysing and choosing those that work best and that allow us to give more accurate information to our clients, even in the dynamic market environment we have experienced in recent years.”

The dashboard also clearly indicates the difference between the real-time, current market data and the predictive or synthetic data, so clients can distinguish between the actual and forecast liquidity models.

Next step: improving the client experience

The Settlement Efficiency and Penalty dashboards are currently in the prototype phase in Euronext Securities Copenhagen, with Euronext Securities Oslo and Porto to follow. Implementation of the data lake in Euronext Securities Oslo will begin later this year, with the goal of launching the dashboards in late 2024. Similarly, the Liquidity Dashboard will be introduced in a prototype phase to select clients in Euronext Securities Copenhagen, with the other markets to follow over the next year.

Development is also underway for a dashboard collecting data from Euronext Securities’ CRM platform. “Our plan is to integrate our data pool with the data we collect during the different client support phases,” says Fernando Gilardi “Currently, our CRM system gathers information on the queries we get from clients, and we want to create a dashboard that will display these questions and show key parameters that can give our clients more insight into common issues and their resolution.”