Efficiency in Japan is good news for Omgeo 12 August 2013Singapore Reporter: Georgina Lavers
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Omgeo announced a 47 percent year-on-year increase in equity and fixed income volumes processed on its post-trade services for the Japanese market.
The increase, said Omgeo, is down to buoyant conditions in the local market since the end of 2012, as well as increased take-up of Omgeo Central Trade Manager.
Omgeo CTM centrally matches cross-border and domestic equity, fixed income, exchange-traded derivative (futures and listed options) and contract for difference trades.
Japanese fixed income trades processed on Omgeo CTM have more than doubled, and marked growth in the volume of domestic trades processed by a number of significant clients in the last 12 months, including Sumitomo Mitsui Asset Management.
Domestic trade volumes account for 74 percent of transactions processed on Omgeo CTM for the Japanese community overall, up from 56 percent a year ago.
Omgeo’s growth in Japan follows a number of key investments including the development of a link to connect Omgeo CTM to the settlement system of the Japan Securities Depository and continued investment in Omgeo CTM.
Earlier this year, Omgeo also officially became member of Future Industry Association Japan Chapter and has brought in new staff, including Michael Ross as representative director of Omgeo Japan.
Nellie Dagdag, executive director for Asia Pacific at Omgeo, said: “Our Japanese clients are increasingly interested in the benefits of automation and standardisation for the processing of domestic and cross-border transactions, particularly as market volumes rise."
"According to our research, Japan has an extremely high level of settlement efficiency and a same-day affirmation rate of over 95 per cent, so in many ways our Japanese clients are already global leaders in operational best practice.”
Omgeo also said that it sees opportunities among Japan’s trust bank sector to help improve overall market efficiency, including wider adoption of Omgeo ALERT, a web-based global database for the maintenance and communication of account and standing settlement instructions.
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