Canada's Financial Models Company has successfully launched its new trade messaging network FMCNet2, with a real-time central matching facility that enables it to encroach on territory previously monopolised by DTCC/Thomson joint venture Omgeo.
Following months of beta-testing with industry participants, the first phase of the FMCNet2 release took place in mid-February, when over 60 clients moved to FMC's upgraded standing settlement instruction database. The current phase involves individually migrating over 240 clients world-wide to the full FMCNet2 system.
In addition to its local matching model, DTCC-ID Hub and Swift Hub, FMCNet2 offers users a central matching utility, enabling real-time messaging between counterparties.
Bob Shaw, FMC's director of electronic trade settlement says the Internet-accessd system automates the full trade lifecycle, from initiation through to settlement "while retaining flexibility and interoperability to integrate with any trade order management, portfolio accounting, or settlement system in the world."
FMC is the first vendor to move into the trade matching space since the demise of the consortium-backed Global Straight-Through Processing Association. The collapse of the GSTP left the field wide open to rival hub Omgeo. SunGard, which was also exploring the central matching business, has yet to make a move.