First live repo trade successfully matched in DTCC’s Omgeo CTM, between Scandinavia’s Kammarkollegiet and Nordea Bank
New York/London/Singapore/Hong Kong/Sydney, December 14, 2015 – The Depository Trust & Clearing Corporation (DTCC)’s Omgeo subsidiary, the global standard for institutional post-trade efficiency, and SimCorp, the leading provider of investment management solutions and services, today announced that the first live repurchase agreement (repo) trade has been automatically processed in SimCorp Dimension and Omgeo Central Trade ManagerSM (Omgeo CTM) between Kammarkollegiet and Nordea Bank. This marks a significant milestone in DTCC’s ongoing partnership with SimCorp to deliver straight-through processing (STP) to the marketplace.
For trades agreed between the buy- and sell-side, current processing for repos is largely manual. Operational efficiencies and service levels decrease as manual processes are employed, while the absence of a repo system for electronic confirmation, allocation and central matching creates an inherent risk within the post-trade environment. DTCC’s Omgeo has been working with the European Repo and Collateral Council (ERCC), the industry representative body and is part of the International Capital Market Association (ICMA), to address these various challenges.
Through this partnership, Omgeo CTM, DTCC’s strategic platform for the central matching of cross-border and domestic transactions, has been integrated with SimCorp’s enterprise investment management solution, SimCorp Dimension, to enable users to seamlessly automate their repo post-trade matching process. DTCC and SimCorp already provide support for the equity and fixed income asset classes. Omgeo CTM allows almost 2,200 investment managers and brokers/dealers to automate their block and confirmation processing in a single solution that supports best practices.
Matthew Nelson, Managing Director of Global Product and Strategy at DTCC’s Omgeo, said: “Given today’s challenging economic environment, trade participants have never been under greater pressure to further mitigate risk, reduce costs and enhance operating efficiencies. DTCC’s Omgeo provides solutions that not only process trades faster, but process trades better. Industry experts agree that central matching with Omgeo CTM is the most efficient way to streamline trade flows and achieve higher levels of automation, and DTCC Omgeo’s long-term partnership with SimCorp is yielding even more results for its clients.”
Fredrik Waesterberg, Global Head of Settlement at Nordea Bank, said: “With Omgeo CTM, we can match trade fundamentals with our trade counterparties, such as Kammarkollegiet, for the open and close legs of our repo agreements on trade date using a single trade ticket, ensuring terms of the deal are clear to both of us. Furthermore, Omgeo CTM keeps open repo trades available for re-matching, which allows us to make subsequent changes to our repo trades. DTCC Omgeo and SimCorp are active voices in this particular field, and we look forward to working with them on this and future projects.”
Repo or financing transactions have recently caught the attention of regulators due to their large denominated trades and the associated risk to individual firms as well as the overall system. Confirming these transactions electronically is a critical initial step in the clearance and settlement life-cycle. For more information, please visit www.omgeo.com/repo