Omgeo, a wholly owned subsidiary of DTCC, automates trade lifecycle events between investment managers, broker/dealers and custodian banks, enabling 6,500 clients in 52 countries to seamlessly connect and interoperate. By automating post-trade operations, including the allocation, confirmation/affirmation, settlement instruction/notification and collateral management processes, users accelerate the clearing and settlement of trades and better manage and reduce their counterparty and credit risk.
Omgeo is helping its clients prepare for the move to a shorter, harmonized settlement cycle T+2 across all European (EU) member states by January 2015. As a first step, Omgeo is working closely with its user community to ensure that its clients are sufficiently automated to meet the shorter settlement deadline by fully utilizing services from Omgeo, such as central matching through Omgeo CTM and standing settlement instruction enrichment via Omgeo ALERT.
Omgeo has added new exchange-traded derivatives (ETD) functionality to its central matching platform, Omgeo CTM, to support ETD post-trade activities. With exchange-traded derivatives volumes expected to increase as more investment managers move from OTC derivatives to futures and listed options as a result of global regulatory mandates, there will be increased pressure to support this key asset class throughout the lifecycle of the trade. More than 40 market participants have already agreed to adopt this new functionality since its rollout.