Korean Asset Manager Implements Omgeo Post-Trade Tools

Korea’s Truston Asset Management, which manages approximately $14 billion across hedge funds and mutual funds, has implemented Omgeo Central Trade Manager (Omgeo CTM) for trade matching and Omgeo ALERT for standing settlement instructions (SSI).

Other Korean managers have been using these solutions for cross-border trades, but Truston is the first local asset manager to use them for in support of domestic trades, as the firm has seen growing domestic equity trading volumes.

“This is a natural operational progression, as firms look to implement single post-trade processing platforms across asset classes and markets. As Korea continues to rebound from the effects of the global financial crisis and as volumes grow, we expect to see further adoption of Omgeo’s best practice solutions,” says Nellie Dagdag, executive director of sales and solution delivery for Asia, DTCC (the parent company of Omgeo).

With Omgeo CTM, the automated matching and settlement notification capabilities can improve operational scalability and foster trade processing efficiency, says Omgeo, adding that Truston can also improve same day affirmation rates, lowering risk and enhancing settlement efficacy.

Through ALERT, Truston can automatically share account and SSI data with their counterparties. ALERT is used as a web-based global database for the maintenance and communication of account and SSIs, which include data such as account numbers, bank identifier codes (BICs) and place of settlement.

“Since implementing Omgeo CTM and ALERT, we have seen a significant reduction in our workload, reducing operational risks, resource demands and manual processes in both the confirmation/affirmation SSI data enrichment processes,” says Lee Sung Won, senior executive vice president, head of management strategy department at Truston. “We believe that Truston is now a few steps ahead of its competitors, and we are expecting increased investment opportunities in the near future.”