Omgeo, the global standard for post-trade efficiency, today announced that ITG Canada Corp. was the first broker in North America to go live with 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.
ITG Canada's 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 (in essence, Institutional Trade Matching, or ITM) and response times. Per National Instrument 24-101 goals, the Canadian financial services community is currently working to a noon of T+1 ITM rate of 90 percent. With Omgeo CTM, users have achieved match rates of close to 96 percent by noon on T+1 compared to the Canada industry average of 85 percent.
"At Omgeo, we've continued to increase our footprint in Canada," said Tim Keady, managing director, global sales and relationship management, Omgeo. "In the past year, we've increased our investment manager community on Omgeo CTM by 400 percent and our Omgeo CTM volume growth is up 37 percent, year-on-year (2009 vs. 2008). Couple that with block settlement functionality we've added to Omgeo CTM to meet local market requirements, and we have strong evidence of our commitment to the region. We are pleased to welcome ITG Canada as the first broker in North America to be live on Omgeo CTM, as this is a critical step in promoting increased levels of operational efficiency within Canada, while migrating Omgeo's broker community from Omgeo OASYS Global to the central matching benefits of Omgeo CTM."
Central matching accelerates the critical steps of the post-trade, pre-settlement process, providing more time to resolve trade exceptions and enhances the ability for clients to achieve same-day trade affirmation. Comparatively, local matching relies on traditional message flows in which trade information is provided in a set order, thus adding time to trade settlement.
"We are pleased to be the first broker in North America to adopt Omgeo CTM and we look forward to the benefits that central matching has to offer," said Nicholas Thadaney, CEO at ITG Canada. "Omgeo CTM has demonstrated that it enables improved matching rates for global market participants. This is particularly important in Canada as we navigate National Instrument 24-101, which defines mandatory institutional trade matching. With ITG Canada brokerage operations on Omgeo CTM and the ITG Trade OpsSM software-as-a-service/ASP solution to fully automate and integrate investment manager post trade operations, we are now better positioned to partner with our investment manager clients to promote greater efficiency, reduced risk and overall improved straight-through processing."