Omgeo and ANBIMA Explore Partnership
Brazilian Financial and Capital Markets Association and Omgeo aim to improve automation and standardization in post-trade processes
New York/Boston – June 15, 2010 – Omgeo, the global standard for post-trade efficiency, and ANBIMA, the Brazilian Financial and Capital Markets Association, are working together to identify areas for improvement in post-trade communications between domestic and cross-border participants for trades executed in the Brazilian marketplace. The two organizations will investigate opportunities to further improve the level of automation and standardization in the post-trade and pre-settlement processes by replacing fax and e-mail communication with a standard, automated workflow for communication between local Brazilian and international investment managers, brokers and custodians. Based on the findings, Omgeo and ANBIMA may establish a formal strategic partnership to address efficiency gaps within the market.
Efforts by Omgeo in markets such as the United States, Canada, Korea and Japan, have demonstrated the effectiveness of Omgeo’s partnerships with regional market infrastructure organizations. Omgeo’s relationship with The Depository Trust & Clearing Corporation (DTCC) in the US, the Canadian Depository for Securities (CDS), the Korean Security Depository (KSD) and JASDEC, the Japan Securities Depository Center, affords same-day affirmation (SDA) rates of more than 90 percent in those markets. SDA dramatically reduces the risk of failed trades and can lower operational costs as a result. Firms that automate the post-trade, pre-settlement environment benefit from nearly 50 percent higher SDA rates. Omgeo and ANBIMA will evaluate opportunities to bring similar efficiencies to the Brazilian market’s beneficial owner model, streamlining communication between local market participants in order to reduce costs and credit and market risk.
“We have seen increased demand from the buy-side in the Brazilian market,” said Tim Keady, managing director of global sales and relationship management at Omgeo. “Our discussions with ANBIMA will allow us to jointly pinpoint the areas of opportunity to improve communication of information between the settlement and pre-settlement environments. By combining our resources with ANBIMA, we hope to find opportunities to help local buy-side firms to develop automation and standardization in their post-trade and pre-settlement processes.”
“We are very pleased to announce the partnership with Omgeo.” said Aloisio Corrêa, head of Sistema Galgo, a project created by ANBIMA to develop automation and standardization solutions for the financial and capital markets industry. “Through the partnership with Omgeo, we can study and identify opportunities to integrate our efforts to provide market participants with state-of-the-art solutions for automation and standardization in the post-trade and pre-settlement processes.”
ANBIMA (Brazilian Financial and Capital Markets Association) is one of the most important representatives of financial and capital markets players in Brazil. The Association represents more than 300 members including commercial, multiple and investment banks, asset managers, brokers, securities dealers and investment advisers. ANBIMA aims to strengthen the Brazilian capital markets as an instrument for fostering national development. |
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