Being live on Omgeo CTM will enable Credit Suisse to be one of the first broker/dealers to deliver central counterparty clearing of OTC equity transactions to the buy-side.
Through Omgeoâs partnership with EuroCCP, clients using Omgeo CTM can access the benefits of a central counterparty, including the elimination of settlement pre-matching and a streamlined infrastructure. The new service will mitigate the counterparty risks and reduce the inefficiencies that today characterise the hedge fund/prime broker/executing broker processing chain. Following the pilot, the service will also be available to institutional clients and their executing brokers.
The implementation by Credit Suisse Securities (Europe) Limited of Omgeo CTM marks the beginning of the migration of Omgeoâs sell-side clients from electronic trade confirmation to central matching. There are another 13 early adopter broker/dealers that are currently in the process of making the transition from Omgeo OASYS Global, an electronic trade confirmation solution, to Omgeo CTM. Once broker/dealers move to central matching, they are able to fully participate in the matching process and take a more proactive role in exception processing. The result is mitigated operational risk through improved same-day affirmation (SDA) and response times.
Leigh Walters, Executive Director, Global Sales and Head of EMEA, Omgeo said, âIncreasing the size of the broker/dealer community on Omgeo CTM is a big priority. Momentum from the brokers has been gathering pace and was recently boosted by the announcement that Omgeo CTM will be developed to provide a central counterparty service for the buy-side through a partnership with EuroCCP. Other drivers have included the restructuring of Omgeo CTM pricing with lower transaction fees.â
He continued, âOmgeo CTM is our flagship central matching offering and we remain dedicated to focusing resources on its future development.â
Omgeo has also seen buy-side interest and volumes surge in its central matching engine. In addition to a 23 percent increase in the number of investment managers using Omgeo CTM over the past year, there has also been a swell in the number of trades being passed through the system, with 26 percent more in July 2009 than July 2008.