|Chilean Depository (DCV) Approved to Offer Automated Post-Trade Processing Solution with Omgeo
Trade matching service to bring increased efficiencies to the Chilean market
New York/Boston/London/Singapore/Santiago — 31 July 2012 — Omgeo, global standard for post-trade efficiency, in partnership with the Chilean central depository, Depósito Central de Valores, S.A. (DCV), today jointly announced the Chilean Securities and Insurance Supervisor (Superintendencia de Valores y Seguros, or SVS) has authorized the implementation of their joint trade matching service, effective 20 July 2012. The solution, which is currently in testing with a number of clients, connects Omgeo Central Trade ManagerSM (Omgeo CTM) to DCV, enabling brokers to access the central matching benefits of Omgeo CTM via DCV’s institutional delivery system, SADE.
Omgeo CTM is a strategic platform for the central matching of cross-border and domestic equity, fixed income, exchange-traded derivative and contract for difference transactions. The goal of Omgeo and DCV’s joint matching solution is to automate the matching process in the Chilean markets, ultimately reducing the risk of trade failure in the region.
DCV applied to the SVS for approval on the joint offering earlier this year, and after conducting a rigorous review of the information presented and testing the systems and procedures of the service, the SVS elected to authorize the offering.
According to a recent Omgeo whitepaper, failed trades could put upwards of USD$970 billion in equity transactions and USD$300 billion in fixed income trades at risk globally each year. The study also identified that a key obstacle hindering trade settlement is inadequacy in trade “matching,” or the process by which buyers agree with sellers on what they have bought, in what quantity and at what price.
Fernando Yañez, CEO of DCV, said, “The SVS’s approval of this solution will help DCV market participants reduce settlement risk by enabling automated communication with trade counterparts globally. By improving the efficiency of our markets, Latin America’s role in the global marketplace will only continue to increase.”
Tim Keady, managing director of sales and solution delivery at Omgeo, said, “Efficient matching is critical to reducing risk. This link will enable market participants in Chile to leverage a global industry best practice — central matching via Omgeo CTM — from SADE, marking a key step toward increasing automation, lowering risk and improving post-trade processes in the market.”
The launch of the new joint offering underscores Omgeo’s commitment to increasing settlement efficiency and lowering risk across the global markets. In addition to the DCV, Omgeo also offers links from its services to the Depository Trust & Clearing Corporation (DTCC), Canadian Securities Depository (CSD), Korean Securities Depository (KSD) and Japanese Securities Depository (JASDEC).
About Depósito Central de Valores, S.A. (DCV)
DCV is headquartered in Santiago, Chile and it provides service to several local stock markets, as well as to the over-the-counter market. This entity is jointly held by its member banks, pension funds, insurance companies and three Chilean stock markets (Santiago Stock Market, Chilean Electronic Stock Market and Valparaiso Brokers Market) in addition to the DTCC, Depository Trust & Clearing Corporation (American Securities Depository), which holds a 10% share of it. The DCV keeps securities for an amount of USD$277,200 million. Today, DCV has 180 direct participants, including banks, stockbrokers, pension funds, mutual funds and insurance companies. For further information, visit www.dcv.cl.
At Omgeo, we are the operations experts, automating trade lifecycle events between investment managers, broker/dealers and custodian banks. We enable 6,500 clients and 80 technology partners in 52 countries around the world to seamlessly connect and interoperate. By automating and streamlining post-trade operations, we enable clients to accelerate the clearing and settlement of trades, and better manage and reduce their counterparty and credit risk. Our strength lies with our global community and our ability to adapt our solutions to enable clients to realize clear returns on their investment strategies, while responding to changing market and regulatory conditions. Across borders, asset classes, and trade lifecycles, Omgeo is the global standard for operational efficiency across the investment industry. Formed in 2001, Omgeo is jointly owned by the DTCC and Thomson Reuters.
About Omgeo CTM
Omgeo CTM was developed in 2001 in response to aggressive US Securities Industry Association (now known as SIFMA) T+1 committee requirements that proposed moving from a T+3 to a T+1 settlement cycle. During the past decade, the central matching service has evolved into a trade lifecycle management solution which offers various features including trade valuation, settlement notification, file mapping, trade enrichment, trade notification and benchmarking, as well as reporting from a trade blotter, archiving, filtering, sorting and searching. To promote increased levels of straight-through processing, Omgeo CTM also offers direct links to local market infrastructures and depositories, including the CDS (Canada), DCV (Chile), Jasdec (Japan), KSD (Korea) and EuroCCP.