The links between NSE.ITâs XpressSTP and Omgeoâs OASYS Global and CTM provide increased straight-through processing for cross-border Indian trades, thus providing greater risk management, reduced costs and significantly fewer errors with trade processing.
In 2002, the Securities and Exchange Board of India (SEBI) recommended that market participants replace paper-based communications on post-trade details with an accredited electronic service, such as NSE.IT, using ISO 15022 messages. This has contributed significantly to the reduction of trade settlement cycles in India to the period of T+1. Several entities in India and those trading with firms in India leverage Omgeo solutions in their post-trade processes.
Prior to the partnership between Omgeo and NSE.IT, there were often two post-trade messages originating from the trading member resulting in inefficiencies and risks within the post-execution process. The link between the two companies automates and synchronizes the post-trade communications flow between the trading member, fund manager and custodian.
Omgeo OASYS Global and Omgeo CTM messages are compliant with local SEBI requirements and trade details are either accepted or rejected through the Omgeo services so that only accepted messages are sent through NSE.IT XpressSTP for settlement.
âWe have made significant contribution over the past few years to help the Indian market move towards a T+1 settlement cycle through continuous innovation in our STP product,â said Ramesh Padmanabhan, CEO, NSE.IT. âBy partnering with Omgeo, we are pleased to bring further efficiency by reducing the need for clients to send two similar, yet separate, messages. By receiving messages that are already agreed between counterparties, we are confident that fewer failed trades will result and operational risk will be significantly reduced.â
âThe Indian market has made tremendous strides in efficiency over the past 5 years,â said Tim Keady, managing director, sales and relationship management, Omgeo. âOur partnership with NSE.IT provides even greater streamlining of post-trade operations so that the sell-side can provide the community with better operational risk reduction through the elimination of redundant steps in communicating with investment managers and the CDSL.â