Omgeo today announced the availability of an automated data feed between Omgeo CrossCheck and The Depository Trust & Clearing Corporation's (DTCC's) Trade Information Warehouse (Warehouse), a service offering of DTCC's Deriv/SERV unit.
The link is designed to reduce operational risks in the over-the-counter (OTC) credit derivatives market by enabling market participants to align their portfolios with contract records maintained by the Warehouse.
Omgeo CrossCheck is a centrally-hosted, exception management solution that automates the comparison of portfolios of derivatives between counterparties. The Trade Information Warehouse is the market's first and only comprehensive trade database and centralized electronic infrastructure for post-trade processing of OTC derivatives contracts over their lifecycles, from confirmation through to final settlement. The Warehouse, which currently covers OTC credit derivatives, holds the legal, or "golden," copies of confirmed contracts.
The new link enables Omgeo clients that are also customers of DTCC's Deriv/SERV and the Trade Information Warehouse to receive an automatic feed of relevant credit derivative trade data from the Warehouse to CrossCheck. With this feed in place, clients can compare their portfolio records against the Warehouse to ensure agreement with the "golden copy"
of trade details for positions with all counterparties who use Deriv/SERV. CrossCheck is the only commercially available solution that supports a multilateral reconciliation model in which a client can simultaneously reconcile with counterparties, the Trade Information Warehouse and service providers such as custodians and prime brokers.
Omgeo CrossCheck helps minimize the risks and consequences of unaligned portfolios in advance of payments, collateral calls, credit events and other situations. Firms are better able to scale their business as volumes expand, while effectively managing risk in times of market stress, allowing for high levels of transparency and efficiency.
CrossCheck is part of Omgeo's overall counterparty risk management offering, which also consists of Omgeo ProtoColl, an end-to-end, event-driven collateral and margin management workflow solution that automates the complex collateral process.
"Since the debut of Omgeo's counterparty risk management offerings, and specifically our portfolio reconciliation service Omgeo CrossCheck, we've been dedicated to ensuring that the data involved is of the utmost quality," said Steve Matthews, managing director, product at Omgeo. "By linking CrossCheck to the global standard for centralized and secure data for OTC derivatives at DTCC's Trade Information Warehouse, our clients can be assured that their risks are further mitigated throughout the length of their derivatives contracts."
"Omgeo and DTCC have a long-standing mutual goal of mitigating operational risk within the financial community," said Peter Axilrod, DTCC managing director, business development and Deriv/SERV. "By linking its CrossCheck offering to the Trade Information Warehouse and its contract data, Omgeo is strengthening its counterparty risk management services for market participants."