New York/London/Singapore/Hong Kong/Tokyo/Sydney, September 21, 2015 – Omgeo, a wholly owned subsidiary of The Depository Trust & Clearing Corporation (DTCC) and the global standard for institutional post-trade efficiency, today announced that Brown Brothers Harriman (BBH) was the first global custodian to go live on the new Omgeo ALERTSM GC Direct service. This milestone is an important step in improving the management of account information and Standing Settlement Instruction (SSI) data related to the trade settlement processes between global custodians, funds and investment managers, and is the main goal of the SSI Utility.
Under the agreement, BBH is able to maintain and electronically provide SSI data to its clients and/or their investment managers through the use of GC Direct capabilities in ALERT – the industry’s largest and most compliant online global database for the maintenance and communication of account information and SSIs.
Today, many clients and their investment managers maintain their SSI data manually. With BBH live on the service, all clients or their investment managers who leverage ALERT can connect to the global custodian electronically, thereby allowing BBH to maintain and provide SSI data in an automated, secure and efficient manner, designed to reduce operational risk and costs.
Ray Tyrrell, Senior Vice President at Brown Brothers Harriman, said: "BBH is committed to implementing best-in-class solutions and to working with the industry to mitigate risk and enhance SSI data quality. We’re pleased to work with Omgeo using GC Direct in our efforts to deliver improved operational and cost efficiencies to our clients and their investment managers."
The service facilitates the communication of custodian sourced, Securities and Market Practice Group (SMPG) and ALERT-compliant SSI data by connecting BBH’s central SSI repository to ALERT leveraging ISO 20022 messaging. The new GC Direct capabilities also allow custodians to manage data exceptions on behalf of their clients in order to pursue the highest data accuracy.
The launch of GC Direct capabilities marks a significant milestone as ALERT evolves into the industry’s SSI Utility, enabling global custodians to update, maintain, and manage SSI data electronically for the first time. As part of this evolution, future phases of the SSI Utility include support for collateral SSIs as well as an enhanced API for brokers, asset managers and third party transaction services to retrieve SSI information in real-time during trade processing, reducing the need to maintain disparate databases.
Paula Arthus, President and CEO of Omgeo, said: "As the industry continues to reduce risk throughout the trade lifecycle, and with a large number of markets having moved to a T+2 settlement lifecycle, firms are facing increased pressure to ensure efficient, transparent processes are in place across their operations. Further automation of SSI data within custodian banks using ALERT will introduce greater control in the process, improve data quality standards and reduce the risk of trade failures resulting from incorrect SSI data. We anticipate further participation from the custodian bank and asset management community and look forward to continuing to work with the wider industry to realize the full benefits of the SSI Utility."
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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 to seamlessly connect and interoperate. By automating and streamlining post-trade operations, the firm enables clients to accelerate the clearing and settlement of trades, and better manage and reduce their counterparty and credit risk. Omgeo’s strengths are in its global community and 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, a wholly owned subsidiary of The Depository Trust & Clearing Corporation (DTCC), is the global standard for operational efficiency across the investment industry. To learn more, please visit www.omgeo.com or follow us on Twitter @Omgeo.
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 Brown Brothers Harriman
Brown Brothers Harriman (BBH) is a privately held financial institution that has been a thought leader and solutions provider for nearly 200 years. The firm serves individuals, families, businesses and institutions in its three business lines: Investor Services, Private Banking and Investment Management. BBH’s culture of accountability fosters deep and lasting relationships built on commitment, adaptability and trust.
BBH operates in eighteen locations, including New York, Boston, Beijing, Charlotte, Chicago, Denver, Dublin, Grand Cayman, Hong Kong, Kraków, London, Luxembourg, Nashville, New Jersey, Philadelphia, Tokyo, Wilmington and Zürich. For more information about Brown Brothers Harriman, please visit www.bbh.com.
BBH is a registered service mark of Brown Brothers Harriman & Co. in the United States and other countries.