Omgeo moves on fixed income

Source: Omgeo

Omgeo, the world’s leading provider of post-trade, pre-settlement trade management solutions, today announced the availability of Omgeo OASYSSM 5.0, the latest version of the U.S. domestic industry-standard trade allocation/acceptance service. In addition to existing equity and fixed income trade processing capabilities, OASYS 5.0 offers investment managers and broker/dealers increased automation levels and expanded instrument coverage to reduce processing time and lower costs associated with post-trade securities servicing.

Fixed income capabilities added to OASYS 5.0 include the extended ability to process instrument types via OASYS, including to-be-announced (TBA) contracts for mortgage-backed securities (MBS), and money market securities including commercial paper, through the addition of custom CUSIP submission functionality. These additional instrument types were added to OASYS 5.0 based on findings of the MBS subcommittee of Omgeo’s fixed income working party, underscoring Omgeo’s commitment to responding to client needs. Omgeo OASYS continues to provide the ability for fixed income users to process MBS, collateralized mortgage obligations, asset-backed securities, agencies, corporate bonds, convertible bonds, municipal bonds, treasury bonds, treasury notes and medium term notes, in addition to money market securities (a complete list of instrument coverage is available at

"Omgeo continues to focus on offering its clients more flexible solutions for processing non-equity trades," said John Burchenal, managing director of asset class expansion at Omgeo. "We were pleased to process 1.4 million fixed income allocations via OASYS in 2005, a 45 percent increase over 2004. OASYS 5.0 provides further support of our goal to offer increased instrument coverage so that trading desks can cut the costs and risks associated with processing complex trades."

When OASYS 5.0 is used in conjunction with TradeMatch 6.0 for centrally matching trades (OASYS-TradeMatch), users benefit from accelerated trade settlement and trade failure reduction through the direct routing of trade information to the Depository Trust and Clearing Corporation (DTCC) and to broker/dealer and custodian counterparties via a single message. Reduction in duplicate trade exceptions and consolidation of trade cancellation processes are also among the enhancements to OASYS 5.0.

When trades are allocated and centrally matched via Omgeo solutions, upwards of 90-100 percent of total confirms are affirmed on trade date, significantly reducing the chance of a failed trade. Non-automated trade allocations currently achieve a rate of only 19 percent of total confirms affirmed on trade date. Same-day affirmation helps the investment community realize increased cost savings and reduced risk by reducing the number of failed trades.

"In today’s risk-intolerant market, there is little to no room for failed trades" said Adam Bryan, president and chief executive officer of Omgeo. "Omgeo solutions, including OASYS 5.0, help improve efficiency, cut costs and reduce the risk associated with the post-trade environment and manual processing."

In addition to OASYS 5.0, Omgeo has also recently released Omgeo TradeSuite 6.0, the newest version of the comprehensive trade processing solution that automates messaging and settlement for equity and fixed income securities in the U.S. domestic market. TradeSuite 6.0 actively monitors a trade’s progress which, when combined with message scheduling, moving and warehousing capabilities, provides a simple way to manage the complexity of post-trade processing and to reduce the potential for failed trades.

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