Omgeo, the standard for post-trade efficiency, makes available its counterparty risk management technology, comprised of Omgeo ProtoColl (formerly Allustra Kyros), the firm’s automated collateral management offering, and Omgeo CrossCheck (formerly GEM’s FpML Mediator technology), which provides automated portfolio reconciliation.
Omgeo ProtoColl provides an end-to-end, event-driven collateral and margin management workflow solution for clients to identify, negotiate and satisfy daily margin calls. By using this system, clients gain tremendous insight into their firms’ exposures and risk profiles. The offering handles all margining requirements, including over-the-counter (OTC) derivatives, repos, securities lending, leveraged trading, emerging markets and loan facilities.
Omgeo ProtoColl client Mn Services manages assets totaling EUR 65 billion (August 2008) and looks after pensions of more than 1.1 million individuals and more than 33,000 employers, making it one of Europe’s leading groups in the field of asset management and pension administration.
“After reviewing some of the available solutions for collateral management, we determined Omgeo ProtoColl would best suit our needs,” says Muhittin Elvan, head of risk control at Mn Services. “Not only is the technology and functionality the most comprehensive, but because the product was designed specifically with investment management and hedge fund communities in mind, it was the solution that best met our specific needs. Additionally, Omgeo ProtoColl not only identifies any collateral discrepancies, but also gives transparency into those exceptions to highlight which details need to be resolved between counterparties.”
Omgeo CrossCheck, another component to Omgeo’s counterparty risk management application, is a centrally-hosted service that automates the comparison of portfolios of derivatives between investment managers, broker/dealers and other parties. Comparison of economic details (trade date, notional, rate, etc.), payment information and valuation of positions and portfolios is based on custom-defined matching policies. Omgeo CrossCheck helps minimize the risks and consequences of unaligned portfolios in advance of payments, collateral calls, credit events and other situations.
In September, 2008, Omgeo acquired Allustra, a London-based provider of collateral management solutions and the portfolio reconciliation platform, FpML Mediator, designed by Global Electronic Market’s (GEM). Omgeo ProtoColl is the enhanced version of what was formerly Allustra Kyros and Omgeo CrossCheck is the new FpML Mediator.
D.C.