eSM - electronic Settlement Matching

eSM is revolutionizing the way European OTC energy markets currently operate. Allowing you to eliminate discrepancies and errors from settlement data while enabling automated payments drives shorter (even daily) settlement cycles. Equias eSM 2.0 is EFET compliant, ready to use and already tested by more than 20 trading companies. 

Who is it for?

  • Energy trading companies, specifically the settlements team


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.


eSM is a companion service to eCM and eRR delivered via Equias’ award winning CMS infrastructure. You can easily add eSM to your existing portfolio of Equias services under the terms of the existing Equias contractual agreement without the need for a long procurement exercise. Add or remove Equias services using the one page Abridged Addendum by simply ticking the services you want to use, including those you currently use and any new service like eSM that you may want to add. To discontinue a service submit the Abridged Addendum with all the Equias services that you would like to continue using, but omit the service you wish to discontinue using. No long procurement exercise is required as all Equias services are below EU threshold values and Equias’ services can easily be discontinued.

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.

What is: eSM introduction video

eSM Interoperability

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