Korean Securities Depository and Omgeo Announce Strategic Partnership
Seoul – November 27th 2008 – The Korean Securities Depository (KSD), the central securities depository for South Korea, and Omgeo Ltd, the global standard for post-trade efficiency, today announced that they have formed a strategic partnership that will provide the necessary infrastructure to allow the Korean investment community to achieve greater levels of operational efficiency and automation in trade processing.
With the advent of this partnership, the KSD has signaled its intention to encourage Korean investment managers to adopt a more automated workflow, based on global best practice. KSD will partner with Omgeo to offer a service bureau that will transform Korean cross-border trade processing into a role model of operational efficiency.
The service bureau will offer automated trade matching and processing using Omgeo’s solutions. Through Omgeo Central Trade ManagerSM (Omgeo CTM) and Omgeo ALERTSM, KSD will enable Korean investment managers to electronically confirm the accuracy of trade details with their counterparties around the globe and automatically enrich them with standing settlement instructions (SSIs). Omgeo CTM is a single platform for the central matching of fixed income and equity trade details. Omgeo ALERT is a Web-based global database for the maintenance and communication of standing settlement and account instructions.
Additionally, Korean investment managers will be able to receive a Copy for Information of matched trade details from any interested third party. The KSD and domestic Korean investment managers will hence gain access to Omgeo’s global network of trade counterparties. Omgeo provides certainty and confidence in post trade operations in cross border and domestic markets across the globe.
Mr. Do-Yeal Lee, Managing Director of Deposit Settlement Service Division of the Korean Securities Depository said: “This partnership allows Korean asset managers to join Omgeo’s worldwide community of clients, thereby reducing operational risks and improving efficiency. Additionally, KSD will be geared to have the combined STP infrastructure of domestic and cross-border trading to support seamless processes within the Korean fund management community. Reducing operational and counterparty risk through automation are key ingredients for the future growth and success of the Korean securities market.”
Tim Keady, Managing Director, Global Sales and Relationship Management for Omgeo added: “Omgeo is pleased to have the support of the Korean Securities Depository as we continue to build momentum in Asia. We are looking forward to working with the KSD to provide automation for Korean investment managers as they look to minimize risk and streamline their post-trade processes in the cross-border environment. Our relationship with depositories around the globe is vital as it enables our client community to gain true end-to-end automation and realize the benefits of risk mitigation in the middle and back offices."
Omgeo maintains strategic partnerships with and links to securities depositories around the world, notably the Depository Trust & Clearing Corporation (DTCC) in the US (also one of Omgeo’s parent companies), the Canadian Depository for Securities (CDS) and the Japan Securities Depository Inc (JASDEC). In addition, Omgeo has entered discussions with the Brazilian Clearing and Depository Corporation (CBLC).
The Korean Securities Depository
The KSD was established on April 25, 1994, as the central securities depository in Korea. Transformation into a special public organization under the SEA and diversifying its shareholders eliminated the major obstacles to collective deposits by resolving disputes over the public confidence and the neutrality of the central securities depository. Its shareholders are mostly market players, banks, and banking corporations. KSD was originally constituted by the Securities and Exchange Act (SEA) in 1974 and carried on business in the form of a corporation.
About OmgeoSM
Omgeo creates certainty in post-trade operations through the automation and timely confirmation of the economic details of trades executed between investment managers and broker dealers. Every day Omgeo enables an efficient community of more than 6,000 financial services clients in 45 countries to manage matching and exception handling of trade allocations, confirmations, and settlement instructions. Leading organizations rely on Omgeo to help manage an increasingly complex investment industry by providing operational stability and solutions that complement the focus on profitability in an era of escalating trade volumes. 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.
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