New York/London/Singapore/Hong Kong/Sydney, December 14, 2015 – The Depository Trust & Clearing Corporation (DTCC)’s Omgeo subsidiary, the global standard for institutional post-trade efficiency, and SimCorp, the leading provider of investment management solutions and services, today announced that the first live repurchase agreement (repo) trade has been automatically processed in SimCorp Dimension and Omgeo Central Trade ManagerSM (Omgeo CTM) between Kammarkollegiet and Nordea Bank. This marks a significant milestone in DTCC’s ongoing partnership with SimCorp to deliver straight-through processing (STP) to the marketplace.
For trades agreed between the buy- and sell-side, current processing for repos is largely manual. Operational efficiencies and service levels decrease as manual processes are employed, while the absence of a repo system for electronic confirmation, allocation and central matching creates an inherent risk within the post-trade environment. DTCC’s Omgeo has been working with the European Repo and Collateral Council (ERCC), the industry representative body and is part of the International Capital Market Association (ICMA), to address these various challenges.
Through this partnership, Omgeo CTM, DTCC’s strategic platform for the central matching of cross-border and domestic transactions, has been integrated with SimCorp’s enterprise investment management solution, SimCorp Dimension, to enable users to seamlessly automate their repo post-trade matching process. DTCC and SimCorp already provide support for the equity and fixed income asset classes. Omgeo CTM allows almost 2,200 investment managers and brokers/dealers to automate their block and confirmation processing in a single solution that supports best practices.
Matthew Nelson, Managing Director of Global Product and Strategy at DTCC’s Omgeo, said: “Given today’s challenging economic environment, trade participants have never been under greater pressure to further mitigate risk, reduce costs and enhance operating efficiencies. DTCC’s Omgeo provides solutions that not only process trades faster, but process trades better. Industry experts agree that central matching with Omgeo CTM is the most efficient way to streamline trade flows and achieve higher levels of automation, and DTCC Omgeo’s long-term partnership with SimCorp is yielding even more results for its clients.”
Fredrik Waesterberg, Global Head of Settlement at Nordea Bank, said: “With Omgeo CTM, we can match trade fundamentals with our trade counterparties, such as Kammarkollegiet, for the open and close legs of our repo agreements on trade date using a single trade ticket, ensuring terms of the deal are clear to both of us. Furthermore, Omgeo CTM keeps open repo trades available for re-matching, which allows us to make subsequent changes to our repo trades. DTCC Omgeo and SimCorp are active voices in this particular field, and we look forward to working with them on this and future projects.”
Repo or financing transactions have recently caught the attention of regulators due to their large denominated trades and the associated risk to individual firms as well as the overall system. Confirming these transactions electronically is a critical initial step in the clearance and settlement life-cycle. For more information, please visit www.omgeo.com/repo
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With over 40 years of experience, DTCC is the premier post-trade market infrastructure for the global financial services industry. From operating facilities, data centers and offices in 16 countries, DTCC, through its subsidiaries, automates, centralizes, and standardizes the post-trade processing of financial transactions, mitigating risk, increasing transparency and driving efficiency for thousands of broker/dealers, custodian banks and asset managers worldwide. User owned and industry governed, the firm simplifies the complexities of clearing, settlement, asset servicing, data management and information services across asset classes, bringing increased security and soundness to the financial markets. In 2014, DTCC’s subsidiaries processed securities transactions valued at approximately US$1.6 quadrillion. Its depository provides custody and asset servicing for securities issues from over 130 countries and territories valued at US$64 trillion. DTCC’s global trade repository maintains approximately 40 million open OTC positions and processes roughly 280 million messages a week.
To learn more, please visit www.dtcc.com or follow us on Twitter @The_DTCC.
About Omgeo CTM
Omgeo CTM is our strategic platform for the central matching of cross-border and domestic transactions automating the trade confirmation process across multiple asset classes, including equities, fixed income, repos, exchange traded derivatives and synthetic equity swaps.
To learn more, please visit www.omgeo.com/ctm or follow us on Twitter @The_DTCC.
Since 1971, SimCorp has been providing investment and portfolio management software and services to the world’s leading investment managers, asset managers, fund managers, fund administrators, pension funds, insurance funds, and wealth managers. Based on its world-class software platforms, SimCorp Dimension and SimCorp Coric, SimCorp provides global financial organizations with the tools they need to mitigate risk, reduce cost, and enable growth. Listed on the NASDAQ OMX Copenhagen, SimCorp is a global company, regionally covering all of Europe, North America, and Asia Pacific.
To learn more, please visit www.simcorp.com or follow us on Twitter @simcorp.
About Nordea Bank
Nordea is the largest financial services group in the Nordic and Baltic region. Nordea holds leading positions in corporate and institutional banking as well as in retail and private banking. We are also the leading provider of life and pensions products in the Nordic countries. Nordea is one of few European banks with an AA-rating and is also among the ten largest full-service banks in Europe, based on market capitalisation.
To learn more, please visit www.nordea.com/en/index.html or follow us on Twitter @Nordea.
Kammarkollegiet, the administrative services agency, is Sweden’s oldest agency and was founded in 1539. Kammarkollegiet has over 35 different assignments from the government. The Ministry of Finance is the agency´s main client. Kammarkollegiet provides expertise in law, finance, procurement, insurance, asset management and administration for the best possible state management that benefits the taxpayers.
To learn more, please visit www.kammarkollegiet.se/english.
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