JPMorgan Investor Services (JPMIS) says it has gone live with a new settlement instruction interface with Omgeo Central Trade Manager (Omgeo CTM). JPMIS is the first custodian to implement a full STP solution with Omgeo based on ISO15022 messages. Trades confirmed in Omgeo CTM can now be instructed directly to JPMIS.
“We have worked very closely with Omgeo to build this innovative new service and we are delighted to be able to further help our clients achieve their STP goals and respond to industry needs”, says Neil Henderson, Business Executive, Securities Processing and Fund Services, JPMIS.
However, Morgan was effectively obliged to build the link because it is custodian to Royal London Asset Management (RLAM), the one major fund manager to have committed itself to Omgeo CTM. But Morgan says the link is designed to be generic, and can be used by any Omgeo CTM user who is also a client of JPMIS. The service is being offered by JPMIS to its clients at no additional cost.
“Including global custodians into the Omgeo CTM trade-confirmation process is a great step forward in further streamlining the life cycle of a trade,” says Adam Bryan, President and CEO of Omgeo. “The processes of trade confirmation and settlement notification can now be tightly integrated, improving efficiency and lowering cost and risk.”
The linkage between JPMIS and Omgeo uses the SWIFT network and ISO15022 standard messages. Eligible trades are entered by the client into Omgeo CTM and matched with broker/dealers. A matched trade is then instructed to JPMIS. The client has no need to create a separate trade instruction. Morgan says the process reduces the number of systems a trade has to flow through and allows a single instruction to perform both the confirmation and instruction processes.