Omgeo TradeSuite automates messaging and settlement for equity and fixed income securities and is used for post-trade processing on domestic and cross-border trades of U.S. securities. By providing seamless connectivity from execution to settlement, utilizing fixed formats and translation between message standards, it provides a simple way to manage the complexity of post-trade processing. The latest version, Omgeo TradeSuite 7.1, includes several key features, such as:
- Enhanced risk mitigation by providing an electronic audit trail
- New 10b-10 discrete fields required by the SEC, including new values for existing role field, mark up/mark down, current yield, yield to maturity, yield to call/redemption and 3rd party remuneration received indicator
- Web access to confirm disclosures, eliminating the need for paper confirm disclosures
- Elimination of costs associated with printing, mailing and storing paper disclosures
- Annulment of existing mailed elimination confirmation agreement
Broadridge Financial Solutions, Inc. (NYSE:BR) is the first of Omgeoâs global partners to link its Brokerage Processing Services (BPSÂ®) platform to Omgeo TradeSuite 7.1. BPS is Broadridgeâs multi-currency back-office processing system that supports real-time order management, trade processing and clearance and settlement of North American equities, mutual funds, and options. By linking to Omgeo TradeSuite 7.1, Broadridgeâs BPS clients enjoy seamless access to the post-execution Omgeo environment.
âOur strategic partnership with Omgeo provides our clients with end-to-end benefits in automated trade processing,â said Charlie Marchesani, President, Securities Processing Solutions US, Broadridge. âThe link between Broadridgeâs BPS and Omgeo TradeSuite provides our clients with the ability to leverage this integrated solution to gain efficiencies in the trade clearance and settlement process. Broadridge is committed to supporting our clientsâ business needs by continually enhancing our offerings either through development or strategic partnerships. We are pleased to continue to leverage our relationship with Omgeo to offer our clients industry-leading tools to assist them with mitigating risk, streamlining processes and lowering their operating costs.â
To mitigate risk, the legal and compliance groups of most broker/dealers mandate that a separate paper confirm listing broker-specific disclosure information be distributed to counterparties in addition to the electronic confirm. Prior to the availability of Omgeo inSITE, recipients of these supplementary confirm disclosures would often pay a third party to store the paper documents offsite. This practice resulted in an enormous cost to the industry for processing, distributing and storing these documents. With the ability to house this information electronically via Omgeo inSITE, that cost is drastically reduced and the use of paper is eliminated.
Using pre-defined criteria, broker/dealers post their confirm disclosures within Omgeo inSITE, where each set of criteria generates a URL and reference number. Omgeo TradeSuite electronic confirms submitted by subscribing broker/dealers are enriched with the URL and reference number of the confirm disclosure appropriate for that trade. Counterparties can view this information by following the URL and using the unique reference number noted on their enriched electronic confirm. The ability to view confirm disclosures electronically eliminates the need to generate additional paper confirms, resulting in cost savings for both the buy and sell side.
âOmgeo has worked closely with SIFMA and the SEC to identify the best way for the industry to meet requirements of 10b-10 while also taking advantage of the opportunity to tremendously reduce risk and the associated costs of maintaining a paper trail in the confirmation process,â said Lee Cutrone, managing director of industry relations at Omgeo. âWe strive to ensure that our solutions not only benefit our client community, but the industry at large. Omgeo TradeSuite and inSITE meet this expectation by moving the financial services industry one step closer to paper elimination and dramatically reducing the risks inherent with manual processes in the post-execution portion of the trade lifecycle.â
While Omgeo inSITE currently stores confirm disclosures for TradeSuite users, Omgeo continues to explore additional uses for the repository to benefit the global financial community.