Settle your trades
with electronic Settlement Matching (eSM)

Our eSM service automates your settlement process: enabling you to shorten payment cycles and mitigate financial risk. Based on an identical set of document formats, contents and rules, it leaves no room for error – while potentially enabling you to achieve same-day settlement.
It’s estimated that the amount of money wasted by the European OTC trading community in one year through manual OTC bilateral settlement is between €37,200 for the smallest and €565,000 for the largest trading organisations every year. How much could you save?

eSM – the ultimate matchmaker

In essence, eSM is matchmaker – where every invoice issued by a supplier is reconciled based on the customer’s view.
Both documents are identical
based on each trading party’s own internal trade information; and then automatically matched – both at the headline invoice level but also line item by line item.
Any significant discrepancy is automatically identified
The eSM system returns the invoice as a ‘mismatch’ and highlights where this has occurred. Inclusion of both party’s own trade IDs ensures speedy resolution and identification of which party needs to make the appropriate adjustment.
Netting calculations are hugely simplified
Because trading is so often a two-way street (with suppliers and customers switching roles), the matchmaking ability of eSM enables easy netting between both parties based on an ‘apples versus apples’ calculation.
All pending invoices are held in queue and clearly visible
in the eSM system prior to being matched. Thus, if an invoice or shadow invoice is missing it can be spotted and chased-up immediately.
Variables in this process are now automated
For example, VAT details are automatically cross validated upon submission; while any changes in Standing Settlement Instructions (SSIs) are immediately applied to both the invoice and shadow invoice in the eSM system.

The eSM service saves our Back Office up to 90% of the time previously spent on correcting incoming invoices.”

Alena Zemanová

Head of Back Office, ČEZ, a.s.

Digital matching of incoming eSM invoices with CMS means that we can automate our procurement workflow while speeding up settlement processes.”

Geert van Wijngaarden

Head of Backoffice, EWE TRADING GmbH

eSM is an important part of our digitalization journey and the final step in an automated settlement process.”

Simone Honf

Head of Mass Market Operations, Uniper

How much could you save through electronic trade settlement?

By reducing manual labour, decreasing the potential for human error, and automating key tasks like error detection and resolution, netting calculations and SSI verification, we’ve calculated that it’s possible to realise savings of up to €535,000 annually for large organisations.

Would you like to know more?
Choose an organisation size to see the possible savings
 
Large
Medium
Small

€535,000 annually

€200,000 annually

€37,500 annually

*depending on trade volume

Case study:
EWE leads the way in electronic settlement

EWE Trading recently decommissioned its legacy settlement system and migrated all its related bilateral settlement workflows to our eSM service.

As a result, 1,000 monthly standard and non-standard invoices are being automatically issued to both eSM users and non-users alike, with unprecedented speed, efficiency and accuracy.

Read the full case study (PDF)

Bilateral margining
with eBM

The latest addition to our portfolio has been designed to help you trade even more confidently. Our electronic Bilateral Margining (eBM) service will fully automate this process – enabling more traders to bilaterally margin each other more frequently.

Find out more

Implementing eSM is easier than you might think. Ready to start automating your trading process?
Equias is here and ready to support you.

Maintaining standards

The eSM service is the third and final step in the EFET’s 20-year mission to bring OTC energy trading into the 21st century. Here at Equias, we have worked to support the OTC trading community in implementing these changes every step of the way: first through automated trade reporting, then through confirmation – and now, through settlement. You’re in safe hands with Equias.

Are you thinking what we’re thinking?

A growing number of bilateral trading companies are now plugging into the benefits of eSM. If you’re interested in joining them - and reaping the benefits of automated trade settlement - we’d be delighted to explain more.
Let’s talk