PCA Asset Management can now automatically send trade data matched and confirmed in Omgeo CTM and OASYS Global to JASDECâs PSMS. The direct connection between JASDECâs PSMS and Omgeoâs 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 Japanâs 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 â
*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 JASDECâs 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 PSMSâs trade matching.
âImprovement of operational efficiency and acceleration of straight-through processing (STP) is a growing trend in the financial industry.â said Mr. Tomoyuki Sunada, Assistant Director of Operations and Information Technology at PCA Asset Management Limited. âBy 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.â
âJASDEC has been providing PSMS service since September 2001â, said Shunichiro Unno, Director for Post-trade Services of Japan Securities Depository Center, Inc. âit 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.â
âOmgeo has been committed to the Japanese securities market for over ten years,â added David Estrada, Senior Company Officer of Omgeo K.K. (Japan). âOur 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.â
Omgeoâs relationship with JASDEC is an integral part of the Omgeoâs broader strategy to build relationships with central depositories around the world. By integrating its confirmation/affirmation and matching services with CSDsâ 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.