DTCC and SimCorp to deliver repo central matching
14 December 2014 New York
Image: Shutterstock
The Depository Trust & Clearing Corporation鈥檚 (DTCC) Omgeo subsidiary and SimCorp have successfully completed the first automatic live repo trade in SimCorp Dimension and Omgeo Central Trade.
The trade was between Kammarkollegiet and Nordea Bank and marks a significant milestone in DTCC鈥檚 ongoing partnership with SimCorp to deliver straight-through processing to the marketplace.
Current processing for repo is largely manual. Operational efficiencies and service levels decrease as manual processes are employed, while the absence of a repo system for electronic confirmation, allocation and central matching creates an inherent risk within the post-trade environment, according to DTCC.
DTCC鈥檚 Omgeo has been working with the European Repo and Collateral Council, the industry representative body and is part of the International Capital Market Association, to address these various challenges.
Matthew Nelson, managing director of global product and strategy at DTCC鈥檚 Omgeo, said: 鈥淕iven today鈥檚 challenging economic environment, trade participants have never been under greater pressure to further mitigate risk, reduce costs and enhance operating efficiencies.鈥�
Fredrik Waesterberg, global head of settlement at Nordea Bank, said: 鈥淲ith Omgeo CTM, we can match trade fundamentals with our trade counterparties, such as Kammarkollegiet, for the open and close legs of our repo agreements on trade date using a single trade ticket, ensuring terms of the deal are clear to both of us.鈥�
鈥淔urthermore, Omgeo CTM keeps open repo trades available for re-matching, which allows us to make subsequent changes to our repo trades. DTCC Omgeo and SimCorp are active voices in this particular field, and we look forward to working with them on this and future projects.鈥�
The trade was between Kammarkollegiet and Nordea Bank and marks a significant milestone in DTCC鈥檚 ongoing partnership with SimCorp to deliver straight-through processing to the marketplace.
Current processing for repo is largely manual. Operational efficiencies and service levels decrease as manual processes are employed, while the absence of a repo system for electronic confirmation, allocation and central matching creates an inherent risk within the post-trade environment, according to DTCC.
DTCC鈥檚 Omgeo has been working with the European Repo and Collateral Council, the industry representative body and is part of the International Capital Market Association, to address these various challenges.
Matthew Nelson, managing director of global product and strategy at DTCC鈥檚 Omgeo, said: 鈥淕iven today鈥檚 challenging economic environment, trade participants have never been under greater pressure to further mitigate risk, reduce costs and enhance operating efficiencies.鈥�
Fredrik Waesterberg, global head of settlement at Nordea Bank, said: 鈥淲ith Omgeo CTM, we can match trade fundamentals with our trade counterparties, such as Kammarkollegiet, for the open and close legs of our repo agreements on trade date using a single trade ticket, ensuring terms of the deal are clear to both of us.鈥�
鈥淔urthermore, Omgeo CTM keeps open repo trades available for re-matching, which allows us to make subsequent changes to our repo trades. DTCC Omgeo and SimCorp are active voices in this particular field, and we look forward to working with them on this and future projects.鈥�
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