PCA Asset Management Adopts JASDEC/PSMS and Omgeo CTM/OASYS Global

1 July 2009

Omgeo, the global standard for post-trade efficiency, today announced that the direct connection between the Pre-Settlement Matching System (PSMS) provided by the Japan Securities Depository Center (JASDEC) and Omgeo Central Trade Manager (Omgeo CTM) and OASYS Global – became available on a full scale. Following the start of the direct connection service, PCA Asset Management Limited has adopted the service.

PCA Asset Management can now automatically send trade data matched and confirmed in Omgeo CTM and OASYS Global to JASDEC’s PSMS. The direct connection between JASDEC’s PSMS and Omgeo’s system enables automated processing of the trade lifecycle from confirmation to settlement matching, realizing a more streamlined process flow on a single platform, thus helping clients decrease settlement risk and improve operational efficiency.

Currently in Japan’s securities trading environment, as Direct Market Access (DMA) and algorithmic trading become more popular, trading systems increasingly diversify themselves, while front offices tend to turn to automated processes for their operations to manage an increasing number of transactions. However, in many cases post-trade operations are still done manually and tend to fall behind the front office in terms of automation. The simplification and automation of post-trade operations, from trade confirmation to settlement matching can contribute to shorter time to complete settlement, reduced costs and risks and improved operational efficiency.

Benefits of the JASDEC PSMS/Omgeo link include –
*Single platform that will cover both domestic Japanese and cross-border trades
*Affirmed trade data between investment managers (IMs) and brokers will be sent to JASDEC’s PSMS automatically, which will enable to enhance efficiency and reduce risk
*A PSMS Web Terminal will allow IMs to monitor trade matching status inside of PSMS
*Demateralization of investment instructions
*Trust banks will receive both investment instructions data and trade reports at the same time by PSMS’s trade matching.

“Improvement of operational efficiency and acceleration of straight-through processing (STP) is a growing trend in the financial industry.” said Mr. Tomoyuki Sunada, Assistant Director of Operations and Information Technology at PCA Asset Management Limited. “By adopting JASDEC PSMS and Omgeo CTM direct connection service, we can now automatically send affirmed trade data to JASDEC PSMS without manual intervention that will help reduce trade failure and operation cost, thus bring great benefits for us.”

“JASDEC has been providing PSMS service since September 2001”, said Shunichiro Unno, Director for Post-trade Services of Japan Securities Depository Center, Inc. “it is our pleasure that the alliance with Omgeo brings a true STP solution to the allocation through settlement matching process. I firmly believe it would contribute to more enhance the efficiency of the Japanese securities market.”

“Omgeo has been committed to the Japanese securities market for over ten years,” added David Estrada, Senior Company Officer of Omgeo K.K. (Japan). “Our long-tem relationship with JASDEC achieved true risk reduction and efficiency for middle and back offices. We look forward to more investment managers benefiting from this direct connection service.”

Omgeo’s relationship with JASDEC is an integral part of the Omgeo’s broader strategy to build relationships with central depositories around the world. By integrating its confirmation/affirmation and matching services with CSDs’ instruction and pre-settlement matching systems, Omgeo aims to deliver greater end-to-end straight-through processing, risk mitigation and provide efficiencies similar to the ones realized in the US through its link to the Depository Trust & Clearing Corporation (DTCC), the U.S. depository. Investment managers, broker/dealers, custodians and CSDs will benefit from the elimination of redundant operational steps, the achievement of shorter trade settlement cycles and greater transparency of trade flows from confirmation through to settlement.

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