DTCC to Leverage Both Companies' Capabilities to Meet Evolving Industry Needs in Global Post-Trade Processing
New York, October 2, 2013 – The Depository Trust & Clearing Corporation (DTCC) today announced that it has completed its 100% acquisition of Omgeo, the global standard for efficiency in institutional post-trade processing. Omgeo is a fully-owned subsidiary of DTCC.
By leveraging both companies’ capabilities under a unified strategy, the acquisition enables DTCC to further expand its global footprint, advance service innovation and reduce risks and costs in post-trade processing. The combination of DTCC and Omgeo will also foster increased collaboration among the buy-side, sell-side and custodian communities. With the addition of Omgeo, DTCC now has offices in 14 countries worldwide.
“Working together with Omgeo under a single integrated global strategy for post-trade processing, DTCC will leverage the strengths and breadth of both organizations to create valuable services for our mutual clients and reduce related costs and risks,” said Michael Bodson, DTCC President and Chief Executive Officer. “The integration of Omgeo’s international buy-side clients with DTCC’s community of clients will create new opportunities for growth. DTCC and Omgeo are strongly committed to protecting our clients and the financial markets by providing market-leading solutions that create efficiencies, increase transparency and reduce risk in post-trade operations.”
With the closing of this transaction, Omgeo becomes part of DTCC’s portfolio of businesses. Marianne Brown continues to serve as President and Chief Executive Officer for Omgeo, reporting to Michael Bodson, DTCC President and Chief Executive Officer. The Omgeo subsidiary will continue to be overseen by the Omgeo Board of Managers, which is the governing body comprised of mostly industry representatives.
“We are excited about the transaction as it enables DTCC and Omgeo to facilitate a unified strategy around key industry initiatives including the move to trade date affirmation of institutional trades, settlement matching in DTCC’s subsidiary, Depository Trust Company (DTC), and the adoption of shorter settlement cycles in various markets,” added Marianne Brown, Omgeo’s President and Chief Executive Officer. “We look forward to innovating together around post-trade processing and clearance and settlement services to provide significant value to our global community of investment managers, broker-dealers, custodian banks and other market participants.”
Prior to the transaction, DTCC and Thomson Reuters served as equal owners and strategic partners in Omgeo since its formation in 2001 and throughout its growth and expansion over the years, which included the introduction of a fully integrated straight-through-processing (STP) solution for institutional post-trade processing, linking an electronic allocation engine, a central matching solution and the leading account and standing settlement instruction (SSI) database. Thomson Reuters will continue as a key service provider to and partner with Omgeo.
DTCC has operating facilities and data centers around the world and, through its subsidiaries, automates, centralizes, and standardizes the post-trade processing of financial transactions for thousands of institutions worldwide. With 40 years of experience, DTCC is the premier post-trade market infrastructure for the global financial services industry, simplifying the complexities of clearance, settlement, asset servicing, global data management and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, derivatives, money market instruments, syndicated loans, mutual funds, alternative investment products, and insurance transactions. In 2012, DTCC’s subsidiaries processed securities transactions valued at approximately US$1.6 quadrillion. Its depository provides custody and asset servicing for securities issues from 131 countries and territories valued at US$37.2 trillion. DTCC’s global trade repositories record more than US$500 trillion in gross notional value of transactions made worldwide.
Formed in 2001, Omgeo automates trade lifecycle events between investment managers, broker/dealers and custodian banks, enabling 6,500 clients and 80 technology partners in 52 countries around the world to seamlessly connect and interoperate. By automating and streamlining post-trade operations, Omgeo enables clients to accelerate the clearing and settlement of trades, and better manage and reduce their counterparty and credit risk. Omgeo’s strength lies within its global community and its ability to create solutions to enable clients to realize clear returns on their investment strategies, while responding to changing market and regulatory conditions. Across borders, asset classes, and trade lifecycles, Omgeo is the global standard for operational efficiency across the investment industry. For more information, please visit www.omgeo.com.