Trade matching joint venture Omgeo is reporting that 17 firms have signed on as 'early adopters' of its Central Trade Manager (Omgeo CTM) global STP platform, including six investment managers, three broker-dealers, five custodian banks, two STP vendor partners.
The investment managers are Lazard Asset Management, Legg Mason Investors, Montgomery Asset Management, Invista Capital Management, Royal London Asset Management and Sofaer Global Research (HK) Limited.
Dresdner Kleinwort Wasserstein, Goldman Sachs and Morgan Stanley comprise the broker-dealers; Bank of New York, Citibank, Investors Bank & Trust, Northern Trust and Wells Fargo make up the custodian banks.
The non-bank industry particpants are STP vendor partners Charles River Development and Thomson Financial Investment Management Group; as well as State Street Investment Manager Solutions, a provider of outsourced post trade operations services.
Omgeo, a joint venture between Thomson Financial and the US Depository Trust and Clearing Corporation, is pitching its model for post-trade processing in direct competition with rival utility GSTPA and a forthcoming solution from SunGard. Omgeo's CTM provides central matching, real-time settlement instruction enrichment and settlement notification messaging. The solution runs on an entirely new XML-based, 15022-compliant TCP/IP platform, and provides a bridge to the organisation’s electronic trade confirmation service Omgeo Oasys Global. It is envisaged that early adopting investment managers will be able to process their global trades through Omgeo CTM with any broker currently using Oasys Global.
John Riccardi, senior vice president of Lazard Asset Management, comments: “We can immediately gain the benefits of the latest cross-border STP technology, without losing access to those of our brokers who are operating in the Oasys Global environment.”
Under the early adopter pricing formula, a typical transaction involving a broker, an investment manager and a custodian bank would be priced at approximately $1.96, inclusive of enrichment and settlement notification. Charges would be apportioned between the parties based on the specific workflow details.
Currently being implemented by early adopters, the new matching service is expected to have live users in early 2002.
Dave Merrill, Omgeo managing director of global operations, comments: "The Omgeo CTM Early Adopter programme is not a pilot; it's an upgrade to a more streamlined and robust global STP solution."