Omgeo, the global standard for post-trade efficiency, today announced that Samsung Securities is the first broker in Asia live on Omgeo's central matching engine, Omgeo Central Trade Manager (Omgeo CTM).
Omgeo began providing broker/dealers with access to the central matching capabilities of Omgeo CTM last year, and now has 6 brokers live on the solution, with an additional 7 planning to go live in the first half of 2010.
Samsung Securities' implementation of Omgeo CTM underscores the momentum of Omgeo's migration of sell-side clients from Omgeo OASYS Global to its central matching platform, Omgeo CTM. Once broker/dealers move to central matching, they are able to fully participate in the matching process and take a more proactive role in exception processing. The result is mitigated operational risk through improved same-day affirmation (SDA) rates and response times.
Samsung Securities is also the first broker live on the Omgeo CTM FIX interface. In direct response to industry need for an end-to-end solution, Omgeo has partnered with order management systems and FIX network providers to offer the global securities industry a streamlined straight-through processing (STP) solution linking the front and back offices. The Omgeo CTM FIX interface allows clients to leverage the benefits of both Omgeo and FIX by automating allocations earlier in the trade cycle and moving clients even closer to full end-to-end STP.
"We are pleased to be the first broker in Korea and all of Asia to process trades via Omgeo CTM," said, Mr. Changmook Choi, CRO, Senior Vice President of Samsung Securities. "While we have relied upon Omgeo for some time now to provide our clients with automated trade processing, the capabilities afforded to us through central matching will further streamline the critical steps of the post-trade, pre-settlement process, providing full transparency into the status of trades and enhance the ability for clients to achieve same-day trade affirmation."
Central trade matching results in a reduction in trade failures and operating costs of up to 70 percent; meanwhile SDA rates can soar to 94 percent. Central matching also allows firms to achieve 97 percent affirmation rates by T+1 and 99 percent by T+2. Comparatively, local matching relies on traditional message flows in which trade information is provided in a set order, thus adding time to trade settlement.
"The addition of Samsung Securities to Omgeo's community of brokers leveraging Omgeo CTM is a true win for us," said Tim Keady, managing director, global sales and relationship management at Omgeo. "Samsung is leading the way in Korea in terms of maximizing efficiencies, cost savings and risk reduction through central matching and their investment manager clients are poised to provide greater responsiveness and efficiency to their client base. We are very pleased to see Omgeo CTM for brokers making such traction around the world."