Transcript Shaping STP Template - BDUG - Bank Depository User Group

Omgeo - Industry Update
Presented by:
Vicki Mazza – Relationship Manager
BDUG Conference October 2006
Agenda
• Evolution of Omgeo’s Strategy
• Industry Update on Matching
• STP – Omgeo Solutions carving the way for STP
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Fixed Income / TradeHub
Alert on the Web/ Alert Plus
Omgeo Central Trade Manager
• Questions / Answers
Omgeo Overview
• Orchestrator of post-trade pre-settlement trade
management within the global securities industry
• Process over 1 million fixed income and equity
trades/day
• 6,000 investment manager, broker/dealer and custodian
bank users in more than 40 countries
• Combined 30 years experience, Omgeo is the result of
a global joint venture between the DTCC and Thomson
Financial
Omgeo’s Strategy: 2006+
• Automate Investment Manager allocations across multiple
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asset classes
Provide IM’s with a single point of access to Omgeo and 3rd
party trade management solutions for trades across multiple
asset classes
Facilitate efficient trade management and settlement through
Omgeo CTM and Open SI/SN
Strengthen strategic relationships with key clients and
partners
• Increase our capability and capacity by adopting a global
sourcing model
Industry Update on Matching
Omgeo TradeSuite Product Volumes
August 2006
• Average Daily Trades/Confirms:
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1,025,000
Daily Equity Average:
Daily Fixed Income Average:
923,000
102,000*
Confirm/Affirm (TradeSuite):
Central Matching Daily Average:
950,000
75,000
* Automated allocation to electronic confirm rate still low for Fixed Income,
approximately 10%
Oasys and Fixed Income
WHAT’S NEW FOR VERSION 5.0 –
FIXED INCOME UPDATE
• Added automation and expanded instrument
coverage
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Ability to submit user-defined CUSIPS
Processing of To Be Announced (TBA) contracts for
Mortgage Backed Securities (MBS)
Improved fixed income processing via security type and
standardization across OASYS, TradeMatch and ALERT
WHAT’S NEW FOR VERSION 5.0 –
CUSTODIAN BANKS UPDATE
• Enhanced communication minimizes
inefficiency and operational risks.
– Expanded connectivity includes ability to allocate
to custodians via TradeHub or by-pass in
TradeMatch
Oasys Fixed Income Community Update
 Community tracking at a 45% increase in automated allocations over YTD
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2005
Commercial Paper continues to trend upwards month over month
MBS traffic on the rise; and TBA traffic anticipated with OASYS 5.0 uptake
Uptake and use of OASYS 5.0
• Broker coverage is increasing – outreach to counterparties is key
• Code of Practice/standards adherence
Cash Trades/Money Market Instruments
Metrics: client specific data
Standardized Repo processing
New and continuing partnerships with Blackrock Solutions, CRD, Bloomberg
as well as many others..
Alert Enhancements – Alert Plus
ALERT Plus
ALERT Plus will allow IMs and IMOs the ability to
create and manage their high-volume account
and settlement data more efficiently.
Upload and global search and replace functionality
will help greatly reduce resource restraints,
manual intervention, settlement errors and
operational costs.
ALERT Plus
Key Features
Ability to make changes to all account and settlement
instruction data across all markets available
• Bulk Data Import
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Bulk import account and settlement instruction data from
a file instead of manually updating one-by-one
• Global Search and Replace
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Change instances of the same data across multiple
accounts or settlement instructions
ALERT Plus
Key Features
• Broker list attachment
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Attach broker lists to accounts via import and view
through user interface
• Market activation
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Helps facilitate the activation of selected markets on
an account-level basis
Omgeo Central Trade Manager
Omgeo Central Trade Manager
• Increase in investment manager usage of CTM for
allocations to brokers:
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August 2005 – 395,674 trades
August 2006 – 720,367 trades
• Increase in Settlement Notifications to Custodians via
Omgeo’s Closed User Group with SWIFT:
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August 2005 – 13,188
August 2006 – 55,210
Questions?