Straight-through processing joint venture Omgeo has released the complete working software code for its Central Trade Manager product (Omgeo CTM) and the production version of its Oasys-TradeMatch solution. The company, set up by The Depository Trust & Clearing Corporation (DTCC) and Thomson Financial, has also published early adopter pricing examples for Omgeo CTM.
Omgeo CTM is a central trade-management solution for domestic as well as cross-border trades worldwide, including real-time settlement instruction enrichment and settlement notification messaging.
Adam Bryan, president and CEO of Omgeo, says: “The release of working code for Omgeo CTM marks an important milestone for Omgeo."
Bryan says Omgeo is working with a number of ‘early adopter’ clients to upgrade their current, back office settlement environments to Omgeo CTM, which provides for exception processing and automated workflow. The product plan has been designed to ensure backward compatibility with existing Omgeo services, so that clients will be able to move forward at their own pace, says Bryan.
Those clients who choose not to upgrade their systems immediately to Omgeo CTM can utilise the company's Oasys-TradeMatch linkage service, which provides investment managers with real-time central matching of allocations to confirmations for U.S. domestic trades.
Omgeo says it will provide "temporary bridges" between the CTM and its existing post-trade processing products, including Oasys Global and TardeSuite. "Longer term, the current services will no longer be supported or enhanced and a well-defined retirement schedule for each service will be published," states the vendor.
The new trade management engine provides a bridge to Oasys Global, enabling early adopting investment managers to immediately process their global trades through CTM with any of the 200-plus brokers currently using Thomson's trade matching service, rather than with only those brokers that have moved directly to CTM.
Clients testing the new TradeMatch linkage service have seen immediate benefits in terms of reduction in trade affirmation time delays, with several users achieving trade-day affirmation rates of 100 percent, says Omgeo. This compares with current industry average rates of 11 per cent says the vendor.
The early adopter pricing for Omgeo CTM assigns charges to the various trade counterparties based on the value received by each. A typical transaction involving a broker, an investment manager and a custodian bank would be priced at approximately $1.96, inclusive of settlement instructions. Charges would be apportioned between the parties based on the specific workflow details and could vary significantly from transaction to transaction as those details vary.
This pricing is comparable to Omgeo’s current cross-border ETC pricing and rival GSTP service states Bryan.