Trade management services provider Omgeo and JASDEC, the Japanese central securities depository, are linking their services in a bid to streamline trade processing and increase efficiency. The interface will provide a single point of access to both domestic and cross-border trades.
Omego said that, historically, investment managers in the process of confirming manual trades with brokers would have to send trade instructions to each trust bank in order to affirm with broker. The trust bank would then send instructions to JASDEC to settle.
The direct link between Omgeo and JASDEC eliminates these steps, as trade instructions of matched, institutional trades will now automatically be sent to JASDEC and then passed through to the trust bank, thus reducing the risk of failed trades and operational costs and improving market efficiency.
The link has been tested by a number of clients and is ready to process live trades.
So far, JASDEC has continued to concentrate on the realization of reform in securities clearing and settlement, and as one of the important constituents, we launched our pre-settlement matching system in 2001 and it has widely contributed to promote STP in Japan’s securities market. We expect that building a strong relationship with Omgeo will only support this further, said Yoshinobu Takeuchi, president and CEO of JASDEC.
Omgeo’s relationship with JASDEC is part of the company’s broader strategy to build relationships with central depositories around the world. By integrating its confirmation/affirmation and matching services with CSDs’ instruction and pre-settlement matching systems, Omgeo is aiming to deliver greater end-to-end straight-through processing and provide efficiencies similar to the ones realized in the US through its link to DTCC, such as shorter trade settlement cycles and greater transparency of trade flows.