Omgeo, the world's leading provider of post-trade, pre-settlement trade management solutions, today announced the availability of a new pre-determined quantity (PDQ) link between Omgeo TradeSuite and Depository Trust Company's (DTC) Inventory Management System (IMS).
DTC is a subsidiary of The Depository Trust & Clearing Corporation (DTCC). Omgeo TradeSuite is the post-trade processing service for executions, allocations, confirmations and affirmations on domestic and cross-border trades of US securities. The Omgeo TradeSuite PDQ link to DTC is available now for DTC-eligible trades and has been automatically implemented to all Omgeo TradeSuite clients.
The enhanced PDQ link facilitates better automation by allowing for late affirmed trades (trades affirmed after 12 pm on T+2 until 12 pm on settlement date) to be processed through Omgeo TradeSuite and sent directly to DTC IMS. Late affirmed trades are a new transaction type that were previously not eligible for automated settlement at DTC. Prior to this release, late affirmed trades were processed solely outside of Omgeo, via a Delivery Order (DO) or Night Delivery Order (NDO). This new link allows participants to eliminate settling these transactions as Delivery Orders, a process that was less automated and had experienced higher fail rates and costs associated with those transactions.
Moreover, the new link facilitates better business continuity, since once trades are affirmed, they are sent to DTC's IMS for immediate settlement using ISO 15022 format messages. Previously, trades were sent to DTC's IMS in a batch at 12:00 pm ET each day. Sending trades in real-time reduces risk associated with trade processing by eliminating the gap of time between trade affirmation and the time it is sent to DTC for settlement.
"Faster transmission of trade information after trade execution and/or matching results in improved settlement, which in turn means increased cost savings for the industry." said Steve Matthews, managing director of product, Omgeo. "We are continually evaluating how to provide further benefits to our clients, be it through new solutions, or enhancements to products such as TradeSuite, which is an integral component of trade processing in the US."
Omgeo is a joint-venture of DTCC and Thomson Financial.