Posted December 15, 2008
MUMBAI, BOSTON, and LONDON – Trade processing, risk mitigation and
operational services provider Omgeo LLC and NSE.IT, a provider of
capital markets industry IT solutions that is a subsidiary of the
National Stock Exchange, have partnered to make Omgeo OASYS Global trade
allocation and confirmation solution and Omgeo Central Trade Manager
(CTM) available through NSE.IT’s XSstp, a messaging network for
straight-through processing (STP).
The links between NSE.IT’s XSstp and Omgeo’s OASYS Global and CTM
provide increased straight-through processing for cross-border and
domestic Indian trades, thus providing greater risk management, reduced
costs and significantly fewer errors with trade processing.
“We have made tremendous gains over the past few years to help the
Indian market move toward a T+1 settlement cycle,” said Ramesh
Padmanabhan, Chief Executive Officer of NSE.IT. “By partnering with
Omgeo, we are pleased to bring further efficiency by reducing the need
for clients to send two similar, yet separate, messages. By receiving
messages that are already agreed between counterparties, we are
confident that fewer failed trades will result and operational risk will
be significantly reduced.”
In 2002, the Securities and Exchange Board of India (SEBI) recommended
that market participants replace paper-based communications on
post-trade details with an accredited electronic service, such as
NSE.IT, using ISO 15022 messages. This has contributed significantly to
the reduction of trade settlement cycles in
Prior to the partnership between Omgeo and NSE.IT, there were often two
post-trade messages originating from the trading member resulting in
inefficiencies and risks within the post-execution process. The link
between the two companies automates and synchronizes the post-trade
communications flow between the trading member, fund manager and
custodian.
Omgeo OASYS Global and Omgeo CTM messages are compliant with local SEBI
requirements and trade details are either accepted or rejected through
the Omgeo services so that only accepted messages are sent through
NSE.IT XSstp for settlement.
“The Indian market has made tremendous strides in efficiency over the past five years,” said Tim Keady, Managing Director, Sales and Relationship Management, Omgeo. “Our partnership with NSE.IT provides even greater streamlining of post-trade operations so that the sell-side can provide the community with better operational risk reduction through the elimination of redundant steps in communicating with investment managers and the CDSL.”