Omgeo claims the link will enable investment managers and manager outsourcers to interact with both Omgeo services and other third-party post-trade solutions. Benefits will include streamlined trade and settlement management of multiple asset classes via a single-window ASP system, eliminating the need to maintain multiple systems and services.
DTCC Derivserv automates the matching and confirmation of a wide range of OTC derivatives products, and automates payment matching and bilateral netting of credit default swaps. Over 400 derivatives dealers use the platform to electronically processes over 60% of the total trades in the $17.3 trillion credit default swaps market.
In linking the two services, Omgeo Connect will extend its XML message specification to capture the data relevant to OTC derivatives, transform this data into industry standard FpML messages, and route these messages to DTCC DerivServ via an MQ interface. Post matching, Omgeo Connect will receive status messages from DTCC DerivServ, transform these messages, and pass them back to the investment manager via their Omgeo Connect interface.
This collaboration with DTCC DerivServ is the first of many planned for Omgeo Connect and is a significant step forward in Omgeo’s strategy to quickly bring to market streamlined solutions that address the challenges of processing trades across multiple asset classes, Steve Matthews, managing director, product and business development at Omgeo, commented.
Omgeo is also working with DTCC to create a lightweight, file-based, automated solution for investors that can be rapidly deployed and provide investment managers with the benefits of a real-time direct interface to their derivatives processing without significant development costs. The new interface will be available later this year.
