Omgeo Announces Further Momentum on Central Matching
Community continues to choose central trade matching on Omgeo CTM
New York/Boston/London/Hong Kong – 30 January, 2012 – Omgeo, the global standard for post-trade efficiency, today announced a 38 percent year-on-year increase in the number of investment managers and broker/dealers using Omgeo Central Trade ManagerSM (Omgeo CTM), its strategic platform for the central matching of cross-border and non-U.S. domestic equity and fixed income transactions. Omgeo CTM now has over 950 clients worldwide. This growth includes the addition of 265 investment managers and broker/dealers globally to Omgeo’s thriving community of over 6,500 clients, which now spans across 50 countries.
Omgeo continues to build a globally linked community on Omgeo CTM, where broker/dealers and investment managers have access to the largest group of counterparties for central trade matching. In response to evolving market needs and community feedback, Omgeo has developed its core product over the past 12 months by investing in asset class expansion and growth in emerging markets including China, Chile and India.
Industry participants have continued to adopt and transition to central trade matching via Omgeo CTM. Users benefit from enhanced settlement efficiency and reduced trade fail rates. Same-day affirmation rates on Omgeo CTM average 93 percent, versus locally matched trades with same-day affirmation rates averaging only 72 percent.
Users of Omgeo CTM are also able to take advantage of automatic settlement and account instruction (SI) enrichment via Omgeo ALERT, the industry’s largest and most compliant web-based global database for the maintenance and communication of SIs worldwide. Today, ALERT holds over 5 million settlement instructions on nearly 500,000 accounts.
Steve Matthews, Chief Operating Officer at Omgeo, said: “Regulatory change and the evolution of the financial systems over the next 12 months will continue to focus market participants’ attention on risk management and cost efficiencies. As a result, we anticipate even greater central matching adoption on the buy and sell-side.”
“Faster and more efficient confirmation of trades will become a higher priority for our clients as a result of European proposals for a mandated T+2 settlement cycle across the European markets, as well as the introduction of financial penalties for trades which fail to settle on time.”
About OMGEOSM
Omgeo creates certainty in post-trade operations through the automation and timely confirmation of the economic details of trades executed between investment managers and broker/dealers. Every day, Omgeo enables an efficient community of more than 6,500 financial services clients in 50 countries to manage matching and exception handling of trade allocations, confirmations, and settlement instructions. Omgeo has also extended its trade lifecycle coverage to include counterparty risk management, which supports end-to-end collateralization and reconciliation across multiple asset classes. Leading organizations rely on Omgeo to help manage an increasingly complex investment industry by providing operational stability and solutions that complement the focus on profitability in an era of escalating trade volumes. Across borders, asset classes, and trade lifecycles, Omgeo is the global standard for operational efficiency across the investment industry. Formed in 2001, Omgeo is jointly owned by the DTCC and Thomson Reuters.
About Omgeo CTMSM
Omgeo CTM was developed in 2001 in response to aggressive US Securities Industry Association (now known as SIFMA) T+1 committee requirements that proposed moving from a T+3 to a T+1 settlement cycle. During the past decade, the central matching service has evolved into a trade lifecycle management solution which offers various features including trade valuation, settlement notification, file mapping, trade enrichment, trade notification and benchmarking, as well as reporting from a trade blotter, archiving, filtering, sorting and searching. To promote increased levels of straight-through processing, Omgeo CTM also offers direct links to local market infrastructures and depositories, including the CDS (Canada), DCV (Chile), Jasdec (Japan), KSD (Korea) and EuroCCP.
Omgeo ALERTSM
Launched three decades ago, Omgeo ALERT was created as a result of the community’s demand for a solution that US securities traders could adopt to transmit settlement instructions electronically to their trading counterparts. The buy-side was instrumental in turning Omgeo ALERT, the first post-trade SI solution on the market, into a market standard SI database and, as the industry became more automated, Omgeo ALERT responded with complementary functionalities. Today, Omgeo ALERT contains data for nearly 500,000 funds and manages over 5 million settlement instructions. On average, brokers retrieve almost 30,000 counterparty account instructions per day. Initially an equities-only solution, Omgeo ALERT now offers expanded asset class coverage, including fixed income, exchange traded and OTC derivatives, as well as foreign exchange instruments. |
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