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eSM - electronic Settlement Matching

eSM allows you to remove discrepancies and errors from settlement data, enabling automated payments to drive shorter (even daily) settlement cycles.  eSM delivers the prospect of a fundamental change to the way the European OTC energy market currently operates. 


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Who is it for:

  • Energy trading companies, specifically the settlements team

Benefits

Productivity benefits: 

  • Automate discrepancy identification, leading to faster issue resolution.
  • Removal of data errors making invoice disputes and credit notes obsolete.
  • Automated calculation of netting statement, making manual steps redundant.

Business benefits: 

  • Standardise settlement processes by adopting industry best practice.
  • Reduce payment delays and incorporate automated netting.
  • Shorten the OTC settlement cycle, thus reducing credit risk and freeing up cash.

Features

eSM is a companion service to eCM and eRR delivered via Equias’ award winning CMS infrastructure.

Product description

The context:

eSM is a developing EFET standard for automating settlement, applying the principles of electronic Confirmation Matching (eCM) to the automated matching of invoice documents for physically and financially settled products and the matching of netting statements. Equias’ implementation of eSM was developed in collaboration with an Industry Early Mover group of over 20 companies and went live in December 2019. The focus of the group is now on rapid adoption of eSM across the industry.