Settlement Optionality | The Future of Clearing & Settlement
Today, the clearing and settlement process is an inefficient risk-based cost center for many financial institutions. Current settlement architectures do not sufficiently reduce settlements risks or enable income to be earned by the buy and sell-side institution on the notional value of the settled transaction. Klearnet™ aims to solve these challenges by merging AI and DLT, transforming clearing and settlement processes into a highly efficient lower-risk profit center.
THE FUTURE OF CLEARING & SETTLEMENT
Klearnet™ is developing a patented next-generation clearing and settlement software powered by DLT and AI, transforming clearing and settlement processes for digital assets, currencies, securities and commodities. Understanding the limitations of many centralized and decentralized systems, our patented and patent pending architectures provide financial institutions with greater transactional efficiencies, lower settlement risks and increased monetization with settlement optionality. With Klearnet™, clearing and settlement risks may be reduced with a “trade date plus zero” model and may be simultaneously and continuously monetized with our patent-pending “trade date plus infinity” model*, creating unprecedented revenue generating opportunities for financial institutions.
* The term “infinity” should not be interpreted literally, and is merely used herein to describe a settlement cycle without a specified settlement time or date.
A settlement architecture powered by AI and DLT, reducing risks and uniquely monetizing settlement with optionality.
Digital assets may used by to support collateral management and manage risk, streamlining settlement processes.
Intelligent Net Delta Clearing
Net delta clearing is powered by DLT and AI, optimizing batch transaction settlement, creating efficiencies and increasing monetization of interest.
Settlement is optimized utilizing our patent pending architecture, enabling time-indefinite settlement cycles and monetization of the settlement process.
T+0, settlement and exchange of financial asset and payment occurs in real-time between buy and sell-side upon execution of trade.
T+∞, settlement and exchange of financial asset and payment is atomic while allowing continuous monetization of interest.
Interest may be earned on the notional value of the transaction by both the buy-side and sell-side financial institution.
The Klearnet™ settlement system is being developed to exploit atomic settlement and time-indefinite settlement. Through our proprietary AI-powered distributed ledger technologies, Klearnet™ continuously and simultaneously monetizes settlement and reduces risks.
Reducing settlement risks.
Monetizing settlement cycles.
HOW IT WORKS
The transaction whereby the seller agrees to sell and the buyer agrees to buy a financial instrument (currency, security, commodity or digital asset) in a legally enforceable transaction through each of the trading party's financial institutions.
The process of novating accounts of the trading parties and arranging for the transfer of money and financial instruments between the trading parties and clearing agency. Upon transfer, clearing agency acts as the counterparty to the trading parties.
ATOMIC SETTLEMENT (Phase 1)
The transfer of ownership and title to the money and financial instruments between the trading parties and clearing agency. Earning of interest commences.
TIME-INDEFINITE SETTLEMENT (Phase 2)
The Klearnet settlement software enables the clearing agency to pay interest to the buy and sell-side trading parties on the notional value of the transaction.