What is eSM? How can my organization benefit from it?
eSM Standard has been developed by EFET to facilitate the electronic exchange of settlement documents (Invoices, Purchase Orders, and Nettings), providing the European energy trading industry with the defined message flow, content, and structure needed to facilitate the electronic matching of trade settlement and netting statements.
eSM has now been implemented by many European energy companies who are live, matching OTC settlement with their counterparties.
The main benefits of eSM are:
- Operational risk reduction
- Sending to correct counterparties;
- Reduced threat of reputational risk;
- Reduced threat of loss of business.
- Business process improvement
- Fewer errors and faster issue resolution.
- Efficiency and scalability
- Saving in time spent by Settlement staff manually checking counterparty and broker fee invoices;
- Scalability will allow the Back Office to offer an improved service to the Front Office;
- Increased volumes can be managed without the need to recruit additional staff.
- Increased level of automation
- Automated exchange of all invoice documents in scope, including the matching of all invoice details and line items.
- Cash flow improvement
- Automated settlement opens opportunities for earlier settlements