Markit and Omgeo have partnered to link client settlement instructions used in trade allocations with client documentation used in account opening, which the firms say will standardize and enhance the way buy- and sell-side firms manage documents required to open and maintain accounts.
The firms will join together the benefits of Markit Document Exchange (MDE), a central online platform for counterparties to exchange documentation securely and efficiently, and Omgeo ALERT, a web-based global database for the maintenance and communication of standing settlement and account instructions (SSI).
The financial world is becoming more transparent and automated, says Lansing Gatrell, co-head of MDE at Markit. However, managing client documentation and data is largely a manual process prone to errors and delays. By linking Markits offering with ALERTs customer base, MDE can help the industry make significant progress towards true, end-to-end straight-through processing.
All trading relationships begin with an onboarding process that includes the exchange of documents required for compliance, the firms say. By linking the documents on MDE to the accounts on Omgeo ALERT, the sell side can identify the counterparty, access its associated documents and efficiently open an account. Speeding the onboarding process lowers operational cost and reduces settlement times and the risk of failed trades.
We share a common vision for making our community more efficient and reducing operational risk, says John Burchenal, managing director of market growth at Omgeo. Markit is a valuable partner with an impressive track record and we are thrilled about joining forces on this initiative.”