Source: Northern Trust
Omgeo and Northern Trust today announced that Northern Trust's Global Fund Services unit has added its 15th Investment Operations Outsourcing (IOO) client to Omgeo Central Trade Manager (Omgeo CTM).
Additionally, Northern Trust's IOO trade volumes passing through Omgeo CTM for settlement have increased nearly 500 percent since 2006, due to an expanding client base at Northern Trust and all existing clients converting to Northern Trust's strategic platform, which includes connectivity to Omgeo CTM.
Northern Trust's Global Fund Services provides a variety of straight-through processing (STP) solutions, leveraging Omgeo's post-trade solutions to minimize post-trade errors and trade failures. The use of Omgeo's services offers significant efficiency and cost savings to Northern Trust's IOO clients while reducing risk within the trade communication process. Working with Omgeo for the last six years, through global processing centres in the United States and United Kingdom, Northern Trust has seen trade volumes and number of clients increase steadily.
"By leveraging Omgeo's matching services, Northern Trust is able to afford its outsourcing clients access to a global brokerage community connected to their products. The complementary nature of Omgeo's solutions provides true end-to-end STP of the entire trade process for our investment manager clients and their trading counterparties," said Peter Cherecwich, head of institutional strategy and product development at Northern Trust.
Omgeo statistics show unaffirmed transactions are 37 times more likely to result in trade reclamation later in the settlement process. Since the reclaim process is often time consuming, manual and costly, there is little doubt that affirming a trade prior to settlement is the desired course of action. Central matching, through the use of solutions like Omgeo CTM, facilitate the highest industry rates of same-day affirmation (SDA), which have a direct correlation to lower reclaim rates, reduced cost and risk, as well as overall increased efficiency in the post-execution portion of the trade lifecycle.
"Omgeo's post-execution offerings allow us to provide our IOO clients with tr tried and true efficiencies for trade processing," said Jeff Potter, vice president, Northern Trust. "Our clients expect reliable, flexible, cost-efficient services, and Omgeo consistently exceeds those expectations. Omgeo CTM is the most efficient central matching tool, and we are able to leverage it globally to provide greater rates of same-day affirmation and reduced risk."
"Omgeo conducted a survey on outsourcing and found that fund managers are most motivated to outsource by the opportunities to reduce technology costs and to focus on core competencies," said Tim Keady, managing director of sales and relationship management at Omgeo. "By outsourcing their operations, clients are able to focus on alpha generation, knowing firms like Northern Trust will navigate the post-execution space for them. We are pleased to team with Northern Trust to help the industry achieve greater efficiency and all the benefits inherent in automation."