DTCC subsidiary Omgeo has partnered with investment management solutions provider SimCorp to deliver central matching and processing for repo trades, through its Central Trade Manager (Omgeo CTM).
The first live repo trade has been successfully matched between Scandinavian banks Kammarkollegiet and Nordea Bank.
Intending to bring straight-through processing to repo trading, the launch is part of a wider relationship between DTCC and SimCorp, geared towards bringing more efficiency to the market.
Currently, processing for trades between the buy- and sell-side is mainly manual. Electronic confirmation, allocation and central matching can improve operational efficiency, while reducing post-trade risk.
Through partnering with the SimCorp Dimension investment management solution, Omgeo allows users to automate their repo post-trade matching processes. Omgeo CTM already provides automation for block and confirmation processing for more than 2,000 investment managers and broker-dealers using a single solution.
Matthew Nelson, managing director of global product and strategy at DTCC’s Omgeo, said: “Given today’s challenging economic environment, trade participants have never been under greater pressure to further mitigate risk, reduce costs and enhance operating efficiencies. DTCC’s Omgeo provides solutions that not only process trades faster, but process trades better.”
“Industry experts agree that central matching with Omgeo CTM is the most efficient way to streamline trade flows and achieve higher levels of automation, and DTCC Omgeo’s long-term partnership with SimCorp is yielding even more results for its clients.”
Fredrik Waesterberg, global head of settlement at Nordea Bank, said: “With Omgeo CTM, we can match trade fundamentals with our trade counterparties, such as Kammarkollegiet, for the open and close legs of our repo agreements on trade date using a single trade ticket, ensuring terms of the deal are clear to both of us.”
“Furthermore, Omgeo CTM keeps open repo trades available for re-matching, which allows us to make subsequent changes to our repo trades. DTCC Omgeo and SimCorp are active voices in this particular field, and we look forward to working with them on this and future projects.”
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