Our AI model for securities settlements allows securities documents to be analyzed and relevant information such as shares, transaction type, securities account number, individual price and other data to be extracted. This facilitates the processing of securities transactions in numerous industries.
Test the model directly online on our AI marketplace for securities settlements.
Discover how you can Artificial Intelligence (AI) can make securities settlement efficient and open up the numerous use cases in which the specially trained AI model shines.
What is a securities settlement?
The securities settlement is an official document, essentially the result of a documented financial process that sets out the details of a completed securities transaction between an investor and a financial institution. This process involves the purchase, sale or transfer of securities such as shares, bonds, investment fund units or other financial instruments and regulates the physical or electronic transfer of these securities between buyers and sellers. Trading details are confirmed and reconciled, the securities are transferred to the buyer and the purchase price is simultaneously transferred to the seller.
Securities settlement is a central part of trading in the financial markets and aims to settle transactions safely, efficiently and transparently to ensure the confidence of market participants. This includes the preparation of settlement confirmations documenting the details of transactions and may vary depending on local regulations and settlement systems used.
What is a securities statement needed for?
The securities statement is an important document for investors to review their securities transactions, maintain control over their investments, and understand tax implications. It also serves as a record of the transactions performed and supports accounting and documentation related to investments.
Securities settlement is primarily required to ensure the smooth and orderly flow of financial market transactions, e.g.:
- Ensuring the implementation of the contract - Securities settlement ensures that the buyer and seller of securities fulfill the agreed contractual conditions. This includes the transfer of the securities to the buyer and the payment of the purchase price to the seller.
- Legal obligation - In most countries, there are legal regulations that govern trading in securities and prescribe the proper settlement of transactions. Securities settlement is an important step in fulfilling these legal requirements.
- Prevention of errors and fraud - Settlement ensures that information about a transaction is matched between buyer and seller to prevent errors and fraudulent activity. This contributes to the integrity of the financial markets.
- Transparency - Securities settlement creates transparency by creating a clear record of transaction details. These records are important for tracking transactions and creating trust between market participants.
- Efficiency - In modern financial markets, settlement is usually electronic and automated. This increases efficiency and enables transactions to be processed quickly and cost-effectively.
- Risk Management - Securities settlement helps to minimize risks. It ensures that the payment and transfer of securities take place simultaneously, which reduces the risk of default.
- Customer confidence - An efficient and reliable settlement process, as guaranteed by securities settlement, helps to strengthen the confidence of investors and market participants in the financial markets.
Application areas of securities settlement
Securities settlement has numerous areas of application in various sectors. We present 5 of the most important applications and assign them to the respective sectors:
Financial services
Banks and brokerage firms (e.g. E*TRADE or Interactive Brokers) use securities settlements as a basic operation to settle trades in stocks, bonds, derivatives and other financial instruments. Smooth securities settlement is important to maintain investor confidence and support trading in financial markets.
Investment Fund
Mutual funds (e.g., Vanguard 500 Index Fund or BlackRock Global Allocation Fund) manage investors' money and invest in a wide range of securities. Securities settlement is essential for mutual funds to efficiently handle the purchases and sales of assets and to ensure that investor shares are handled correctly.
Insurance
Insurance companies often hold securities portfolios to manage their reserves and liabilities. Securities settlement helps these companies manage their investment portfolios and ensure that the required securities transactions are properly executed.
Company with treasury function
= important function within a company or organization that is responsible for managing and controlling financial risks and for managing financial resources.
Large companies are sometimes empowered to issue securities to raise capital or manage their liquidity. In these cases, securities settlement plays a role in the issuance and redemption of corporate bonds and other financial instruments to ensure that these processes run smoothly.
Central Banks
Central banks often hold substantial reserves of securities as part of their monetary policy and foreign exchange reserves. Securities settlement is an important part of central banks' daily operations, managing the purchase and sale of securities as part of their monetary policy measures.
In all of these industries, securities settlement is a key part of the business processes that helps to Trade efficient and transparent, support risk management and strengthen the confidence of market participants.
Functions and technologies used
Advanced technologies such as Optical Character Recognition (OCR) and Machine Learning (ML), which are used with the AI model for securities settlement, enable you to make data-driven decisions.
Extraction
The AI is able to extract information independently, which can be adjusted manually if necessary. Examples of extracted content, so-called labels, can be found in the table below with the corresponding values. Numerous other extractions are possible according to this scheme:
| LABEL | DESCRIPTION | TYPE | VALUE |
| Share | Indicates the number of units traded or owned, how many units of a particular security are involved in the transaction. | Number | 500 |
| Depository number | The unique identification number assigned to a securities account. A securities account is an account in which securities such as shares, bonds, investment funds and other financial instruments are held. The securities account number is used to identify an investor's specific securities account. | Number | 54321 |
| Date of receipt | The exact date on which a particular transaction occurred for the investor in relation to the security. It is the date on which the securities were actually booked or transferred to the investor's securities account. | Receipt date | None |
| Unit price | The price per unit of a particular security traded in a transaction. Depending on the type of security, the unit price may have different meanings. | Number | 90,15 |
| Total | The total amount involved in a transaction involving securities. Depending on whether you are buying or selling securities, the total amount could represent the purchase amount (if you are buying securities) or the sale proceeds (if you are selling securities). | Number | 45075,00- |
| ISIN | "International Securities Identification Number" - a globally unique identifier used to identify individual securities. Each tradable security, such as stocks, bonds, mutual fund shares, and other financial instruments, is identified by a unique ISIN. | Text | DE0008404005 |
| SALES ID | "VAT identification number" - the unique number given to companies in the European Union (EU) to identify and track their VAT activities. The VAT number is issued by the national tax authority and consists of a combination of letters and numbers. | Text | DE123456789 |
Integration
With the REST API of Konfuzio, we offer the possibility to convert both your post-edited and pre-edited documents into any Workflow integrate, whether by automatically uploading documents received via email or post-processing documents in spreadsheet software (Excel, Google Sheets, etc.) with specific triggers.
Privacy and security
The protection of your data is a top priority at Konfuzio. All our AI models process data exclusively in accordance with the GDPR and protect sensitive information throughout the entire extraction process.
-> Read more about data protection
Advantages of processing securities settlements with AI
The automation of relevant work steps brings many advantages:
Efficiency, accuracy and consistency
- Time saving - Automatic data extraction significantly reduces the time required for manual data entry. This is particularly important when large volumes of securities statements need to be processed.
- Reduced errors - AI models extract data with high accuracy and minimize the risk of human error.
- Uniformity - Automation enables consistent formatting of the information so that it complies with all regulations. This reduces the likelihood of potential deviations.
User-friendliness, compliance and scalability
- User-friendly - Automatic data extraction with Konfuzio's AI model can be seamlessly integrated and is therefore the ideal add-on for existing software and IT systems. With the efficiently extracted data, importing it into third-party applications is no longer an obstacle.
- Improved compliance - Konfuzio's AI solution ensures that data is transcribed correctly, reducing the risk of compliance issues.
- Large amounts of data - Konfuzio uses scalable AI, which means that even large data sets can be processed efficiently and accurately while keeping pace with fluctuating order volumes.
Data analysis and recording management
- Insights into data - Automated extraction enables quick and easy data analysis. Authorized persons can easily gain insights into their company data that may be valuable for financial planning and decision-making.
- Digital recordings - The process optimization improves the creation of digital records, which makes the Storage and the retrieval of archived data.
Securities settlement AI in action
The following sample document demonstrates the capabilities of the AI model for securities settlements:
Conclusion
Securities settlement is an essential part of trading on the financial markets. It helps to process transactions securely, efficiently and transparently. The AI model offers numerous advantages, including the automatic extraction of data from securities documents through the use of intelligent technologies. The model can be integrated into corporate workflows via the Konfuzio REST API, enabling automated document processing and seamless data flow.
Overall, Konfuzio's securities settlement AI model provides an efficient solution for the extraction and processing of securities information, helping to increase efficiency, reduce errors and increase the confidence of market participants. See for yourself.
Do you have any questions?
Our experts will be happy to advise you on what you can achieve with Konfuzio and the AI model securities settlement in your company. Send us a message and let's explore your options together.
EN 
DE 
ES 
FR