Omgeo, originally set up as a joint venture between the Depository Trust and Clearing Corporation and Thomson Reuters (formerly Thomson Financial) in 2001, produced a host of technology innovations last year that helped its clients reduce settlement issues and lower their operating costs and risks.
Regulators have been heightening the required levels of transparency, standardisation and risk management, and Omgeo has kept up with the high standards needed to be at the top of the technology game and to help clients navigate significant challenges.
Omgeo has been automating critical middle- and back-office processes. For example, Omgeo Central Trade Manager (Omgeo CTM) is a central trade-matching engine that enables firms to achieve a higher rate of same-day affirmation (SDA). SDA is the agreement of all trade details on trade date (T+0) and has been linked to improved settlement efficiency in markets around the globe. The quicker the details of a trade can be agreed upon, the fewer costs and inefficiencies there will be.
One client noted: “Through automation with Omgeo CTM, we will be able to achieve a higher level of straight-through processing via the matching process, which helps to reduce settlement issues, lower operational costs and risks, as well as improve counterparty confidence.”
In 2011, Omgeo added the compliance scan function SI Compliance Scan to its web-based global database, Omgeo ALERT, which was designed for the maintenance and communication of accurate and validated equity, fixed income, derivatives, and foreign exchange settlement and account instructions. The enhanced capability allows its clients to measure settlement instruction data quality as well as their ability to obtain a comprehensive view of their compliance with Securities Market Practice Group local market standards and community best practices worldwide. ALERT’s compliance scan functionality communicated more than 2,500 updates to clients in the first week of operation.
Omgeo has seen a 38% increase in the number of investment managers and broker/dealers using Omgeo CTM. It now has more than 950 Omgeo CTM clients worldwide, adding 265 new clients to the platform in 2011. The technology house also saw more interest in Omgeo ProtoColl, which provides a collateral management capability for scaling over-the-counter derivatives trading and reducing counterparty risk. In a challenging market, Omgeo – with offices in 12 countries including Boston, New York, San Francisco and Toronto – will need more of the same innovation to stay ahead of the competition this year.
(Pictured: Tim Keady, Managing Director of Sales and Solution Delivery, Omgeo)