Omgeo signs firms to exchange-traded derivatives functionality

Source: Omgeo

Omgeo, the global standard for post-trade efficiency, today announced that 28 investment manager and broker/dealer firms, including several of the world's largest broker/dealers, have signed to adopt the new exchange-traded derivatives (ETD) functionality in Omgeo Central Trade Manager (Omgeo CTM), Omgeo's central matching service for equity, fixed income, exchange-traded derivative (futures and listed options) and contracts-for-difference trades.

Omgeo recently increased asset class coverage on Omgeo CTM by adding central trade matching workflows for ETDs, building on the existing cross-asset class functionality. The ongoing development of Omgeo CTM, including the addition of new ETD capabilities as well as the migration of broker/dealer clients from Omgeo's legacy local matching solution, Omgeo OASYS GlobalSM, to Omgeo CTM by 30 June 2013, have contributed to a 35% increase in Omgeo CTM clients in the past year to more than 1,300 investment managers and broker/dealers worldwide.

Ted Leveroni, executive director of derivatives strategy and external relations at Omgeo, commented: "Many of our clients want to operationally standardize their ETD post-trade processing with their equity and fixed income transactions, which are usually matched on the same day as trade date. We added ETD functionality to Omgeo CTM because we recognized that there was a need for a community-based solution that addressed the emerging regulatory framework around transparency and risk mitigation in the processing of derivatives. We are pleased to see our community embrace automation in this asset class."

Futures and listed options volumes have risen significantly over the past several years and it is anticipated that this growth will increase as global OTC derivatives regulations are implemented, including Dodd-Frank in the U.S. and EMIR in Europe. In response, Omgeo introduced ETD functionality on Omgeo CTM to meet market participants' need to replace manual ETD processes with scalable automated solutions.

Investment managers and broker/dealers are using ETD functionality on Omgeo CTM for block and allocation matching, as well as confirming give-ups. This will provide greater transparency by highlighting trade errors earlier on in the process, making it easier to manage operational and counterparty risk by reducing manual processing and margin risk from misallocated trades. 

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