Trade matching service provider Omgeo, which is owned by American CSD DTCC and Thomson Financial, is making available a link between Omgeo TradeSuite and DTCC’s Inventory Management System (IMS). Omgeo TradeSuite is a post-trade processing service for executions, allocations, confirmations and affirmations on domestic and cross-border trades of US securities.
The Omgeo TradeSuite-DTCC is available now for DTCC-eligible trades and has been automatically implemented for all Omgeo TradeSuite clients. It aims to facilitate automation by allowing late affirmed trades (trades affirmed after 12 p.m. on T+2 until 12 p.m. on settlement date) to be processed through Omgeo TradeSuite and sent directly to DTCC IMS for settlement.
Late affirmed trades are a new transaction type that were previously not eligible for automated settlement at DTCC, says Omgeo in a statement. Prior to this release, late affirmed trades were processed solely outside of Omgeo, via a Delivery Order (DO) or Night Delivery Order (NDO). The new link will allow participants to eliminate settling these transactions as DOs, a process that was less automated and had experienced higher fail rates and costs.
Omgeo adds that the new link facilitates better business continuity, since once trades are affirmed, they are sent to IMS for immediate settlement using ISO 15022 format messages. Previously, trades were sent to IMS in a batch at 12:00 p.m. EST each day. Sending trades in real-time reduces risk associated with trade processing by eliminating the gap of time between trade affirmation and the time it is sent to DTC for settlement, says Omgeo.
“Faster transmission of trade information after trade execution and/or matching results in improved settlement, which in turn means increased cost savings for the industry,” says Steve Matthews, managing director of product at Omgeo. “We are continually evaluating how to provide further benefits to our clients, be it through new solutions, or enhancements to products such as TradeSuite, which is an integral component of trade processing in the US.”