Clearstream Smart Realignment Service to Reduce Settlement Fails

Clearstream Banking AG (CBF) announced that, effective December 2025, its clients will be able to subscribe to CBF’s new automated Smart Realignment Service to manage settlement fails of securities deliveries.

The new service is ready to play a critical role in enhancing settlement efficiency, particularly under the compressed T+1 settlement cycle. By automatically realigning securities from eligible accounts, the service aims to reduce failed delivery instructions, potentially decreasing penalties under the Central Securities Depositories Regulation (CSDR).

Under the Smart Realignment Service, CBF will automatically generate realignments from other eligible securities accounts held by the subscribing client to cover deliveries that fail due to a lack of securities on or after the intended settlement date.

Clearstream Smart Realignment Service to Reduce Settlement Fails

Clients can choose between two service options. The Full Scope Service considers any settlement failures across all securities in the markets covered, triggering automatic realignments. Alternatively, the Special Scope Service limits realignments to securities delivery fails related to Eurex “special Repo” trading activity.

CBF transfers an available held-free securities long position from a client’s designated source account to the target account lacking the securities when it detects a relevant settlement failure. Clients may hold source accounts with CBF and/or Clearstream Banking S.A. (CBL).

Eligibility is limited to CBF client securities main accounts categorized as own assets and linked to the same Legal Entity Identifier (LEI). Clients can also assign specific CBF sub-accounts in combination with their main account. Accounts without an LEI will not qualify.

The service covers settlement fails in securities eligible for settlement in CBF for selected markets, including Austria, Belgium, France (except registered shares), Germany, Greece, Italy, the Netherlands, Spain, Portugal, and selected XS/EU ISINs.

So, with the launch of the Smart Realignment Service, Clearstream Banking AG strengthens its commitment to providing innovative solutions that streamline settlement processes, mitigate operational risk, and support clients in managing regulatory obligations more efficiently.

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