Omgeo, the leading provider of post-execution trade management solutions, today announced that its clients are now able to process repurchase agreements (repos) and reverse purchase agreements (reverse repos) through its US trade confirmation service, Omgeo TradeSuite.
As a 10b-10 compliant offering for fixed income and equity trades, TradeSuite meets SEC reporting requirements around the broker/dealer's obligation to provide a confirmation to clients.
Over the past six years, the repo market has seen a tremendous growth surge in trade volumes. While repo trade processing has for the most part kept pace with the increased volumes, manual processes, such as the use of faxes and vast quantities of mailed paper trade confirmations, are still prevalent in certain segments of the market. These non-electronic, manual trade processing practices can lead to increased operational risk and additional cost in the dealer-to-client post-trade space.
Steve Matthews, Managing Director, Product at Omgeo commented "This new TradeSuite release is an Omgeo response to the industry need for further automation in the repo space. The addition of repo functionality into TradeSuite reflects our ongoing strategic commitment to broaden Omgeo's asset class coverage. We will continue to add additional asset classes across our solution set during 2008 and beyond."
The enhanced version of TradeSuite, along with Omgeo OASYS TradeMatch, now fully enables buy- and sell-side firms to process allocations, match and confirm the full suite of US equity, fixed income and repo trades through a single solution. Clients are able to control settlement risk and complexity through proper communication of transaction types and collateral identification for all repo securities and settlement locations. TradeSuite will support virtually all repo trade types: deliver vs. payment (DVP)/receive vs. payment (RVP); tri-party repo; reverse tri-party repo; quad-party repo; buy sell/back; hold-in custody; index repos; flex repos and cross currency repos. The TradeSuite version also allows for electronic confirmation of life cycle events such as substitutions, repricings and rollovers, as well as off leg processing. Clients are also able to electronically store and retrieve rrepo confirmations for audit and archiving purposes for a period of 10 years.
The addition of repo functionality in TradeSuite is part of release 7.0, which provides trade counterparties the flexibility to enhance internal workflows and ultimately limit the use of paper in post-trade processing.