Trade matching utility Omgeo has teamed with broker-dealers ABN Amro, Citigroup, CSFB, JPMorgan, SG CIB and UBS to launch a new allocation interface for its Central Trade Manager (CTM) system that has been designed specifically for low to medium volume investment managers.
Following extensive market research carried out in collaboration with the brokers, Omgeo says the new allocation interface has been designed to address the growing costs associated with non-automated counterparties.
The system, which is now in production after a pilot programme with a number of investment managers, will enable firms who are currently processing trades manually, by fax or telephone to automate the process of submitting trade allocations.
Allocation data is entered into CTM via the new interface. Account and settlement information is then added to the allocation data before it is delivered back to the investment manager's broker/dealer.
Omgeo says the interface provides a single point of access for entry and management of trade data to all counterparties, centralisation of settlement and account information for enrichment of trades and central matching and exceptions management.
Tony Freeman, head, European industry relations, Omgeo, says: "Omgeo CTM allocation interface will provide an easier and cheaper route for lower volume fund managers to realise the significant cost savings and risk reductions that come with automated trade processing."
Omgeo says its analysis shows that by capturing details earlier in the life-cycle of a trade and through the electronic automation of the allocation process, operating costs and trade failures can be reduced by up to 70%, with same-day affirmation rates rising by 80% or higher.