Omgeo’s Central Trade Manager (Omgeo CTM) community has grown by more than 17 per cent during 2013, with the addition of 220 investment management and broker/dealer clients worldwide.
Omgeo CTM is the firm's strategic platform for the central matching of cross-border and domestic equity, fixed income, exchange-traded derivative (futures and options) and contract-for-difference transactions. Over 1,500 firms worldwide now use Omgeo CTM, including 655 investment managers and 866 broker/dealers. In total, Omgeo has over 6,500 clients in 52 countries using its services.
The growth in the Omgeo CTM community has come from an expansion across geographies and asset classes, including new exchange-traded derivative (ETD) functionality and an increasing desire for firms to standardise all post-trade processes on a single platform. To date, 35 clients have signed to adopt ETD functionality on Omgeo CTM. ETD functionality was added to Omgeo CTM in response to the need for a community-based solution that addressed the emerging regulatory framework around transparency and risk mitigation in the processing of derivatives transactions. In addition, three technology providers – Athena Systems, Enfusion and Eze Software Group – have developed interfaces, linking their services to Omgeo CTM ETD functionality, streamlining community access to the central matching platform.
Omgeo CTM community growth has also been partly driven by a multi-year migration of clients from Omgeo’s legacy local trade confirmation service, Omgeo OASYS GlobalSM, to Omgeo CTM. Upon completion of the migration project in June 2013, over 500 broker/dealer clients successfully migrated to Omgeo CTM. These users now benefit from a centralised, best practice model for trade matching, which is widely accepted as the most efficient way to process trades. Same-day affirmation (SDA) rates on Omgeo CTM average 94 per cent, versus locally matched trades with same-day affirmation rates ranging from just 36 per cent in the US domestic market to up to 72 per cent for cross-border and non-US domestic transactions.
Furthermore, users of Omgeo CTM are able to take advantage of automatic settlement and account instruction (SI) enrichment via Omgeo ALERT, the industry’s largest web-based global database for the maintenance and communication of account and standing settlement instructions (SSIs) worldwide. Today, ALERT holds over five million settlement instructions on nearly 500,000 accounts.
Tim Keady, managing director of sales and solution delivery at Omgeo, says: “The migration project has been successfully completed due to the commitment and partnership Omgeo shares with our client community. We would like to thank our member community for their hard work in making this achievable. By rationalising our services onto one platform, Omgeo CTM, our clients are now able to benefit from the increased operational efficiency and risk mitigation that central matching provides.
“At the same time, we have seen significant interest in best practice post-trade processing across the globe, and in particular in Japan as well as emerging markets such as those in South East Asia and Latin America. We remain focused on building partnerships with market participants in these locations and around the world to streamline and standardise post-trade processes and reduce risk.”