Central Trade Matching Grows As T+2 Draws Near

Omgeo’s central trade matching utility saw a 33% increase in users in 2013.
By Janet Du Chenne(59204)
Omgeo’s central trade matching utility saw a 33% increase in users in 2013. This compares with a 25% client increase in 2012, with 320 clients joining the Central Trade Manager (CTM) community that year.

The CTM community saw 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%.

Omgeo attributes the growth to global market participants’ increased desire for automated, post-trade solutions that reduce risk and increase efficiency to the growth seen last year. The growth also dovetails with the agreement of a number of markets to move to a settlement time frame of T+2 on Oct. 6 2014, ahead of the European Commission’s proposed deadline in January 2015.

Additionally, clients have migrated from Omgeo’s legacy local trade confirmation service, Omgeo OASYS Global, to Omgeo CTM. Over 500 broker/dealer clients migrated to Omgeo CTM during the multi-year migration, which concluded in June 2013.
“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.”

«