Omgeo, the global standard for institutional post-trade efficiency, today announced that its Omgeo Central Trade ManagerSM (Omgeo CTM) community has increased by 33 percent in 2013, with the addition of over 150 broker/dealers and 280 investment managers.
More than 1,700 clients globally are now using Omgeo CTM, a central matching platform for cross-border and domestic equity, fixed income, exchange-traded derivative (futures and options) and contracts-for-difference transactions. During this time, total equity and fixed income volumes on Omgeo CTM also increased by 82 percent.
Omgeo CTM community growth has been attributed to global market participants' increased desire for automated, post-trade solutions that reduce risk and increase efficiency. Community growth in 2013 was also partly driven by the completion of a migration of clients from Omgeo's legacy local trade confirmation service, Omgeo OASYS GlobalSM, to Omgeo CTM. Over 500 broker/dealer clients successfully migrated to Omgeo CTM during the multi-year migration which concluded in June 2013. These users now benefit from a centralized, best practice model for trade matching, which is widely accepted as the most efficient way to process trades.
"Omgeo CTM has been a key enabler of reduced risk and increased efficiency in post-trade operations at our firm," stated Dominic Janssens, Director, Global Investment Operations at T. Rowe Price Associates. "Central matching has become viewed by the industry as the ideal method for the post-trade confirmation process."
Tim Keady, Chief Client Officer at DTCC (Omgeo's parent company), said: "Community growth continues to be a key priority because it increases post-trade efficiency for all Omgeo CTM users. A number of factors contributed to last year's increase including our continued focus on strengthening our presence across Asia-Pacific and Latin America, as well as broadening our asset class coverage to include exchange-traded derivatives. We now have over 45 clients signed for ETD functionality."
"More than ever before, firms are seeking to implement best practices across trading and post-trade operations, and regulatory and industry initiatives such as the move towards shorter settlement cycles continue to drive adoption of robust, automated processes. We expect this to continue in 2014."
In Europe, a growing number of markets have agreed move to a settlement timeframe of T+2 on October 6 2014, ahead of the European Commission's proposed deadline in January 2015. Market participants must act now to ensure they can complete all pre-settlement stages of the trade lifecycle, including trade affirmation, in a timely manner. Same-day affirmation (SDA), a key enabler of settlement efficiency, is best achieved on Omgeo CTM where rates average 94 percent, versus locally matched trades with rates ranging from just 36 percent in the U.S. domestic market to up to 72 percent for cross-border and non-US domestic transactions.