1 / 19

Omgeo Update

BDUG Conference, September 15, 2008 Scottsdale Arizona. Agenda. Omgeo IntroductionCurrent Environment / TrendsOmgeo's Business FocusReview of Omgeo products- ALERT, Central Trade Manager (CTM), OASYS, TradeSuiteMunicipal SecuritiesLow affirmation rate and the industry challenge Question: What do Custodians see as impediments to affirmation of the ID Confirm?.

neorah
Download Presentation

Omgeo Update

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

    1. Omgeo Update 2008 BDUG Conference Kevin Arthur, Director, Fixed Income Markets

    2. BDUG Conference, September 15, 2008 Scottsdale Arizona Agenda Omgeo Introduction Current Environment / Trends Omgeo’s Business Focus Review of Omgeo products - ALERT, Central Trade Manager (CTM), OASYS, TradeSuite Municipal Securities Low affirmation rate and the industry challenge Question: What do Custodians see as impediments to affirmation of the ID Confirm? Omgeo’s client community is unique It is comprised of buy-side, sell-side and custodian counterparties. Trading around the globe, across asset classes. Omgeo has over 80 firms in our partnership network This allows members to quickly and easily access our solutions. Our position at the center of this global community makes us unique. Clients benefit from the collaborative way our solutions are designed and developed, the unique mixture of companies that we maintain relationships with as well as the number of clients and users that make up our community. Partnership between DTCC and Thomson Reuters Omgeo’s client community is unique It is comprised of buy-side, sell-side and custodian counterparties. Trading around the globe, across asset classes. Omgeo has over 80 firms in our partnership network This allows members to quickly and easily access our solutions. Our position at the center of this global community makes us unique. Clients benefit from the collaborative way our solutions are designed and developed, the unique mixture of companies that we maintain relationships with as well as the number of clients and users that make up our community. Partnership between DTCC and Thomson Reuters

    3. BDUG Conference, September 15, 2008 Scottsdale Arizona About Omgeo Omgeo is the global standard for efficiency, certainty and confidence in post-trade, pre-settlement operations. We create certainty in post-trade operations through providing automation for timely allocation, matching, confirmation and affirmation of the economic details of trades between investment managers, hedge funds, broker/dealers, and custodian banks. Our established, global community includes: 6,000 community members 46 countries 80 firms in partnership network Omgeo’s client community is unique It is comprised of buy-side, sell-side and custodian counterparties. Trading around the globe, across asset classes. Omgeo has over 80 firms in our partnership network This allows members to quickly and easily access our solutions. Our position at the center of this global community makes us unique. Clients benefit from the collaborative way our solutions are designed and developed, the unique mixture of companies that we maintain relationships with as well as the number of clients and users that make up our community. Partnership between DTCC and Thomson Reuters Omgeo’s client community is unique It is comprised of buy-side, sell-side and custodian counterparties. Trading around the globe, across asset classes. Omgeo has over 80 firms in our partnership network This allows members to quickly and easily access our solutions. Our position at the center of this global community makes us unique. Clients benefit from the collaborative way our solutions are designed and developed, the unique mixture of companies that we maintain relationships with as well as the number of clients and users that make up our community. Partnership between DTCC and Thomson Reuters

    4. BDUG Conference, September 15, 2008 Scottsdale Arizona An established track record Industry participation Jointly owned by DTCC & Thomson Reuters Board of Managers, Advisory Board, Working Parties (50+ firms represented) Regulatory & depository relationships Handling over 2.0 million transactions per day Will exceed 3 million fixed income allocations in 2008 Managing over 2.2 million settlement instructions on over 330,000 accounts 6,00 community members in 46 countries. 6,000 members is defined as site/service installations (i.e. Goldman Sachs using OG & ALERT in Hamburg, OG in Frankfurt & OG Berlin would count as 4). We maintain active relationships with depositories around the world, such as the DTCC, the Canadian Depository for Securities, and JASDEC, as well as key industry bodies including ISITC and SIFMA. 6,00 community members in 46 countries. 6,000 members is defined as site/service installations (i.e. Goldman Sachs using OG & ALERT in Hamburg, OG in Frankfurt & OG Berlin would count as 4). We maintain active relationships with depositories around the world, such as the DTCC, the Canadian Depository for Securities, and JASDEC, as well as key industry bodies including ISITC and SIFMA.

    5. BDUG Conference, September 15, 2008 Scottsdale Arizona Omgeo: Where do we fit in the trade process? Provide automated solutions to streamline the communication process between investment managers, hedge funds, broker/dealers and custodian banks. Remove manual processes – phone, fax – reducing risk, errors and costs.Provide automated solutions to streamline the communication process between investment managers, hedge funds, broker/dealers and custodian banks. Remove manual processes – phone, fax – reducing risk, errors and costs.

    6. BDUG Conference, September 15, 2008 Scottsdale Arizona Current Environment / Market Trends CDO and Sub-Prime Challenges FNMA/FHLMC Municipal Securities Auction Rate Securities, Concerns about Municipalities, Increased topic on Capitol Hill, Low affirmations rates Mergers BNY/Mellon, State Street/ ITG, JPMC/Bear Stearns, BOA/Countrywide, RBS /ABN Changes in liquidity sources NYSE Euronext, NASDAQ/AMEX, Turquoise, Dark pools, Proliferation of execution management (EMS) platforms, BATS Retail SMA/Wrap/Wealth Mgmt Shift in assets from traditional 401k to SMA/UMA Outsourcing Retail SMA, Institutional, Hedge Funds Fixed Income automation slowly catching up to Equities

    7. BDUG Conference, September 15, 2008 Scottsdale Arizona Current Environment / Market Trends Brazil, Russia, India, China (BRIC) Emerging markets, Building out financial services infrastructure, US firms moving to emerging markets Concerns about Derivative automation (Fed) OTC, trade processing and confirmation Regulatory pressure OFAC, SOX, FINRA, SEC, increased Corporate Information Security Heightened focus on Operational Risk STP and risk management key focus areas U.S. on a green path Stop the paper…DTCC and Omgeo campaigns Customers are looking for full automation of their trading book Desire increased transparency, reporting and compliance on a global basis

    8. BDUG Conference, September 15, 2008 Scottsdale Arizona Industry Challenge What do we need to do as an industry become more efficient? How do we deliver progress in today’s environment? What are ways to add client value in the trade processing chain? How do you differentiate your service offering in the current environment?

    9. BDUG Conference, September 15, 2008 Scottsdale Arizona Omgeo Business Focus Committed to delivering robust and sustainable solutions for our global community of clients. Continue to connect all market players including buy side, hedge funds, brokers, prime brokers and custodians into trade processing model for domestic and global trading activity Automate trade processing from front office straight through to settlement facilities Enable seamless interfaces to Omgeo from trading systems and OMS Electronic interface from Omgeo to Depositories US DTCC, Canada’s CDS, Japan’s JASDEC, Brazil’s CBLC US Market Enhancements to the electronic ID Confirm with Trade Suite ID 7.1 Automate and eliminate paper confirms OASYS allocation processing Continue to expand Fixed Income community

    10. BDUG Conference, September 15, 2008 Scottsdale Arizona Omgeo Business Focus Areas SSI Support broad array of asset classes, allow for ease of access to data, ensure market practices are followed, validate as many data elements as possible to ensure accurate population Deliver increased asset class coverage: Fixed Income Repo TBA Derivatives Exchange Traded Derivatives (Futures, Options, Contracts for Difference) Derivative Reconciliation Collateral Management Foreign Exchange (FX) New markets: Canada, Brazil, India, China

    11. BDUG Conference, September 15, 2008 Scottsdale Arizona ALERT Enhancements – Custodian View FX SSI – Delivered in Q3 2008 United States Treasury Office of Foreign Asset Control (OFAC) Compliance – Q4 2008 ALERT will prohibit future use of OFAC sanctioned countries in the definition of settlement instructions New Markets/Validations Release – Q1 2009 Expanded coverage of instruments, depositories and market rules Tighter controls on existing instructions to increase data quality UI Upgrade: Settlement Instruction (SI) View – Q2 2009 Improved SI UI page layout to help data quality and client understanding of the settlement chain Expanded Audit Reporting – Q3 2009 Enhanced audit capabilities & more granular detail into IM activity when linking to custodian models SI Market Rules Scan – Q4 2009 Assess compliance of custodian models US Daily Volumes TradeSuiteJan-08Feb-08Mar-08 Apr-08 May-08 Jun-08 Jul-08Average Daily Trades:1,864,2521,556,3031,573,9061,452,6981,461,8381,392,3091,510,526Equity:1,740,6101,429,1171,442,4091,331,5811,343,4171,278,8051,403,866Fixed Income:123,642127,187131,497121,117118,421113,504106,661Confirm/Affirm(TradeSuite):1,731,6361,446,9901,459,8971,345,5751,350,1401,281,7641,389,302Central Matching (Oasys TradeMatch):132,616109,313114,009107,123111,698110,545121,224US Daily Volumes TradeSuiteJan-08Feb-08Mar-08 Apr-08 May-08 Jun-08 Jul-08Average Daily Trades:1,864,2521,556,3031,573,9061,452,6981,461,8381,392,3091,510,526Equity:1,740,6101,429,1171,442,4091,331,5811,343,4171,278,8051,403,866Fixed Income:123,642127,187131,497121,117118,421113,504106,661Confirm/Affirm(TradeSuite):1,731,6361,446,9901,459,8971,345,5751,350,1401,281,7641,389,302Central Matching (Oasys TradeMatch):132,616109,313114,009107,123111,698110,545121,224

    12. BDUG Conference, September 15, 2008 Scottsdale Arizona Omgeo CTM Recent delivered enhancements Third party notification Allows up to 15 3rd parties to receive SWIFT and CSV files CTM Broker Allows broker dealers to come onto CTM Usage July 07: 851,812 allocations July 08: 1,650,295 allocations July 07: 100,597 SN messages July 08: 141,800 SN messages 350 clients on CTM globally as of August 08 (49% increase YOY)

    13. BDUG Conference, September 15, 2008 Scottsdale Arizona OASYS Recent enhancements OASYS 5.2 – Delivered to production Enhanced Fixed Income, TBA; Enhanced Repo functionality OASYS 6.0 – Targeted delivery Q2 2009 Enhanced Fixed Income, Enhanced commissions management, BIC codes for Clearing Broker, Upgraded API's (Linux), Pre-note allocation to Custodian via TradeHub Usage Daily equity average: 180,000 allocations Daily fixed income average: 15,000 allocations US Daily Volumes TradeSuiteJan-08Feb-08Mar-08 Apr-08 May-08 Jun-08 Jul-08Average Daily Trades:1,864,2521,556,3031,573,9061,452,6981,461,8381,392,3091,510,526Equity:1,740,6101,429,1171,442,4091,331,5811,343,4171,278,8051,403,866Fixed Income:123,642127,187131,497121,117118,421113,504106,661Confirm/Affirm(TradeSuite):1,731,6361,446,9901,459,8971,345,5751,350,1401,281,7641,389,302Central Matching (Oasys TradeMatch):132,616109,313114,009107,123111,698110,545121,224US Daily Volumes TradeSuiteJan-08Feb-08Mar-08 Apr-08 May-08 Jun-08 Jul-08Average Daily Trades:1,864,2521,556,3031,573,9061,452,6981,461,8381,392,3091,510,526Equity:1,740,6101,429,1171,442,4091,331,5811,343,4171,278,8051,403,866Fixed Income:123,642127,187131,497121,117118,421113,504106,661Confirm/Affirm(TradeSuite):1,731,6361,446,9901,459,8971,345,5751,350,1401,281,7641,389,302Central Matching (Oasys TradeMatch):132,616109,313114,009107,123111,698110,545121,224

    14. BDUG Conference, September 15, 2008 Scottsdale Arizona TradeSuite – ID Confirm Enhancements TradeSuite 7.0 – ID Net, New Free Format Fields, Reg SHO; Enhanced Repo functionality TradeSuite 7.1 – Elimination of paper confirms Usage Average daily trades/confirms: 1,510,527 Daily equity average: 1,403,866 Daily fixed income average: 106,661 Confirm/Affirm (TradeSuite): 1,389,302 Central matching Daily Average 121,225 US Daily Volumes TradeSuiteJan-08Feb-08Mar-08 Apr-08 May-08 Jun-08 Jul-08Average Daily Trades:1,864,2521,556,3031,573,9061,452,6981,461,8381,392,3091,510,526Equity:1,740,6101,429,1171,442,4091,331,5811,343,4171,278,8051,403,866Fixed Income:123,642127,187131,497121,117118,421113,504106,661Confirm/Affirm(TradeSuite):1,731,6361,446,9901,459,8971,345,5751,350,1401,281,7641,389,302Central Matching (Oasys TradeMatch):132,616109,313114,009107,123111,698110,545121,224US Daily Volumes TradeSuiteJan-08Feb-08Mar-08 Apr-08 May-08 Jun-08 Jul-08Average Daily Trades:1,864,2521,556,3031,573,9061,452,6981,461,8381,392,3091,510,526Equity:1,740,6101,429,1171,442,4091,331,5811,343,4171,278,8051,403,866Fixed Income:123,642127,187131,497121,117118,421113,504106,661Confirm/Affirm(TradeSuite):1,731,6361,446,9901,459,8971,345,5751,350,1401,281,7641,389,302Central Matching (Oasys TradeMatch):132,616109,313114,009107,123111,698110,545121,224

    15. BDUG Conference, September 15, 2008 Scottsdale Arizona Summary of Key TradeSuite Projects

    16. BDUG Conference, September 15, 2008 Scottsdale Arizona Summary of Key TradeSuite Projects

    17. BDUG Conference, September 15, 2008 Scottsdale Arizona Municipal Affirmation Rate - Industry Challenge Overview Muni affirmation rates at only 66% vs. 89% on noon of T+2 SIFMA dealers and Muni Operations Group concerned with low affirmation MSRB requires affirmation, else dealer required to stop trading with client SIFMA and Omgeo investigating reasons for low affirmation Not all buy side firms affirm trades and often delegated to custodian / clearing agent SIFMA working with dealer community SIFMA and Omgeo engaging buy side firms Next Steps Engage custodians at BDUG – Identify possible obstacles to affirmation Breakout session delves into affirmation rates and barriers Omgeo / SIFMA to set up discussion meeting with all groups, dealers, buy side and custodians

    18. BDUG Conference, September 15, 2008 Scottsdale Arizona Muni vs. Non-Muni Affirmation Rates

    19. BDUG Conference, September 15, 2008 Scottsdale Arizona Lagging Muni Affirmation Rates What are some of the causes for low affirmation rates? Please take a moment to share your thoughts on why affirmation rates are so low and detail any roadblock or impediment

More Related