The Depository Trust & Clearing Corporation (DTCC) has bought the 50% stake in Omgeo that it currently does not own from Thomson Reuters, making it the sole owner of the company.
A press release from the DTCC said the acquisition would enable the companies to drive a single global post trade strategy for post trade settlement.
Marianne Brown will continue to serve as president and chief executive officer for Omgeo.
Andrew Gray, DTCC managing director, Core Business Management and Chairman of the Board of Managers for Omgeo said that the transaction was the result of ongoing conversations between DTCC, Thomson Reuters and the industry on how to best serve market participants given the evolving regulatory and macro environment. “Both DTCC and Omgeo have highlighted to the industry the importance of re-engineering operational processes to enable the implementation of shortened settlement cycles and the transaction will allow further collaboration in this area,” said Gray.
“Full industry ownership enables market participants to play a larger role in shaping decisions related to Omgeo’s technology platforms and processes, that in turn help support their own firms’ strategies. This transaction is aligned with our strategy to build and grow our core businesses globally as Omgeo’s international community and multi-asset class capabilities will open the door to new opportunities for DTCC as we look to expand more broadly in the global post-trade processing sector.”
DTCC and Thomson Reuters served as equal owners and strategic partners in Omgeo since its formation in 2001 and throughout its growth and expansion over the years, which included the introduction of the fully integrated straight-through-processing (STP) solution for institutional post-trade processing, integrating an electronic allocation engine, a central matching solution and the leading account and standing settlement instruction (SSI) database.
Thomson Reuters will continue as a key service provider to and partner with Omgeo.
“Over the past 12 years, Thomson Reuters has built a strong relationship with DTCC through our strategic partnership and we are pleased to see Omgeo enter the next phase of its development. We look forward to continuing our relationship with DTCC as this part of the marketplace continues to evolve,” said David Craig, president of Financial & Risk, Thomson Reuters.
The DTCC added that the acquisition would drive a unified strategy around key industry initiatives including the move to trade date affirmation, settlement matching in The Depository Trust Company (DTC), and the adoption of shorter settlement cycles in various markets.
“DTCC and Thomson Reuters have played a critical role in helping build Omgeo into a world-class post-trade processing organization and we are excited about the new opportunities that lie ahead of us as a result of this transaction,” added Marianne Brown, Omgeo’s president and chief executive officer. “With tighter synergy with DTCC, we have the ability to leverage best practices from both firms and foster a single, integrated strategy for global post-trade processing.”
The terms of the deal were not disclosed. The closing of this transaction is pending regulatory filings in countries where required.
DTCC Buys Out Remaining 50% Stake in Omgeo From Thomson Reuters
The Depository Trust & Clearing Corporation (DTCC) has bought the 50% stake in Omgeo that it currently does not own from Thomson Reuters.