Omgeo, the world's leading provider of post-execution trade management services, today announced that Mackenzie Financial Corporation has begun to process both domestic and cross-border trades via a single interface, Omgeo Central Trade Manager (Omgeo CTM).
The investment manager's Canadian domestic trades matched via Omgeo CTM are sent directly to the Canadian Depository for Securities (CDS) for settlement, enabling an efficient, straight through process and facilitating compliance with Canada's NI 24-101 Institutional Trade Matching Mandate.
Omgeo CTM is a platform for centrally matching equity and fixed income, domestic and cross-border trades. It offers exception-only processing, real-time settlement instruction enrichment and automated settlement notification messaging to custodians and settlement agents. Omgeo CTM enables clients to achieve same or next-day settlement in a cross-border environment across multiple time zones. The interface between Omgeo CTM and the CDS provides fully automated messaging between the two systems to enable the electronic pass-through of matched trades on trade date.
Chuck Murray, Assistant Vice President, Portfolio Administration at Mackenzie Financial, said, "Being able to use a single interface to process both domestic and cross border trades is a huge efficiency gain for us. In addition, the direct link to CDS for domestic trades saves us time and eliminates risk and enables institutional trade matching, as required by NI 24-101. By working with Omgeo and a select group of investment dealers we are improving the efficiency of our trade settlement processing." Mackenzie Financial joins Omgeo's community of 6000 investment managers, broker/dealers and custodian banks worldwide.
The availability of Omgeo CTM for Canada's domestic trades helps firms comply with National Instrument 24-101 - Institutional Trade Matching (ITM) and Settlement, mandated by the Canadian Securities Administrators. National Instrument 24-101 ultimately mandates that counterparties agree to the details of a trade on the day the trade is executed. Omgeo CTM supports ITM by moving trades more quickly and efficiently through the settlement process. Operational risks, costs and inefficiencies are signifificantly reduced as a result. Current Omgeo CTM users can achieve ITM rates upwards of 90 percent, allowing these firms to focus on exception processing and minimizing risk.
"CDS has been looking forward to using its Matched Institutional Trade Interface service to process institutional trades received from a virtual matching utility via CDSX, our clearing and settlement platform," stated Mark Weseluck, Executive Director, Customer Service and Product Development at CDS. "The activation of Omgeo's service will now allow all parties in the securities transaction chain to further advance straight-through processing by eliminating manual handling and duplicative processing."
"We are delighted that Mackenzie Financial has gone live on Omgeo CTM. As a leader in operational effectiveness in Canada, they will reap the benefits of reduced risk and increased efficiency achieved by central matching," commented Timothy Keady, Managing Director of Global Sales at Omgeo. "FirstEnergy Capital Corp., Penson Financial Services Canada, UBS Securities Canada Inc. and Orion Securities Inc.have all played a pivotal role in ensuring that the integration process has gone so smoothly."
In accordance with the requirements as set out in National Instrument 24-101, Omgeo Canada Ltd officially submitted its application (Form 24-101F3) to the Canadian Securities Administrators (CSA) on November 15th to become a recognized matching utility in Canada.