• Deutsche Bank announces new early warning service for securities settlement delays powered by Elastic

LONDON, U.K., October 09, 2020

Real-time insights on settlement risk strengthen client portfolio management and ensure clients can comply with Central Securities Depositories Regulation deadlines

Deutsche Bank today announced that it will launch an enhanced securities settlement service that proactively identifies in-flight security transactions at risk of settlement delay, to debut in early 2021. The enhanced service, powered by the Elastic Stack and Elastic’s machine learning and anomaly detection features, will enable the bank's clients to avoid hefty financial penalties under the upcoming implementation of the new Central Securities Depositories Regulation (CSDR) in 2021.

In 2020, Deutsche Bank launched its current real-time settlement service in Euronext, Germany and the UK. The platform provides its operations staff with a real-time view of the issues that can delay a transaction settlement, a stark contrast to traditional platforms which only provide a retrospective view of what has caused settlement delays.

Using dashboards powered by Elasticsearch and Kafka, Deutsche Bank’s teams actively monitor transactions and are provided actionable tasks when a transaction is flagged at risk of delay. The operations teams can also offer other internal teams and external clients high-performance application programming interfaces (APIs) to run their own settlement queries, using Elastic’s search and analytics engine.

Early warning system flags settlement delays

Deutsche Bank now plans to enhance its settlement service with Elastic's machine learning (ML) technologies, enabling the platform to move from real-time to forward-looking. The ML-enhanced service will proactively detect the in-flight transactions that require actions and alert the bank’s teams before the transactions encounter issues.

“Our aim is to deliver a real shift in how markets view exception processing and to bring pre-trade performance to our post-trade operations. We can now detect transactions in real-time that previously would not be flagged as at risk, and divert our attention from the transactions that ostensibly appear to be at risk, but upon historical analysis have always matched in time to settle,” said Christopher Daniels, director, Data Products, Securities Services at Deutsche Bank.

The analytics model underpinning the enhanced service is powered by Elastic’s anomaly detection feature, which considers seasonality, market variation and other changing dynamics to provide the bank’s operational teams with dashboards and action queues that are driven by a large set of factors that would be too broad and complex for a human to process.

“We have developed several dashboards covering liquidity, settlement performance, and risk and control, but the most recent innovations have been in running machine-learning algorithms in production to provide outlier detection. We’re using the platform to identify the most influential features that are more likely to cause a late or failed settlement, and to focus our data quality reviews on activity that does not synchronise with what we would typically expect from a particular cluster. It's a very exciting time in our data roadmap,” said Daniels.

“Deutsche Bank’s partnership with Elastic showcases the innovation that is achieved when deep domain expertise is paired with the Elastic Stack,” said Dan Broom, area vice president, Northern Europe, Middle East and Africa at Elastic. “Our machine learning and anomaly detection technologies are helping to fuel Deutsche Bank’s innovation and delivering a real game-change in settlement processing.”

About Deutsche Bank

Deutsche Bank provides retail and private banking, corporate and transaction banking, lending, asset and wealth management products and services as well as focused investment banking to private individuals, small and medium-sized companies, corporations, governments and institutional investors. Deutsche Bank is the leading bank in Germany with strong European roots and a global network.

About Elastic

Elastic is a search company built on a free and open heritage. Everyone can get started with Elastic products and solutions quickly and frictionlessly. Elastic offers three solutions for enterprise search, observability, and security built on one technology stack that can be deployed anywhere. From finding documents to monitoring infrastructure to hunting for threats, Elastic makes data usable in real time and at scale. Thousands of organizations worldwide, including Cisco, eBay, Goldman Sachs, Microsoft, The Mayo Clinic, NASA, The New York Times, Wikipedia, and Verizon, use Elastic to power mission-critical systems. Founded in 2012, Elastic is a distributed company with Elasticians around the globe. Learn more at elastic.co.

Elastic and associated marks are trademarks or registered trademarks of Elastic N.V. and its subsidiaries. All other company and product names may be trademarks of their respective owners.


Deutsche Bank AG communications: frank.hartmann@db.com

Elastic Public Relations: PR-Team@elastic.co