Tim Lind, Managing Director, Strategic Planning, Omgeo
As the collateral management environment continues to evolve and become more complex, we recognize that it is extremely important for our clients and the industry as a whole to understand Omgeo’s longer term vision for the collateral management space. Not only is this vision critical for us as an organization when engaging new and existing clients, but it also provides a lens by which we view our desirable state and in turn informs our strategic product plans. Not to be confused with a mission, which is focused on the specifics of what an organization wants to accomplish in the short term, this vision encompasses the direction we want to take and the desired result once we get there.
Why are we committed to our vision? The increased focus on counterparty risk, pressure from regulators, the growing complexity of the collateral management space, and the demand for greater transparency has prompted a new requirement for infrastructure that provides transparent, efficient, and flexible solutions in the collateral management space.
This might take time to realize, but we are committed to its success.
What is our long term vision for the collateral management space?
From portfolio reconciliation, to collateral management workflow, to the ultimate settlement of collateral movements, our vision is to leverage Omgeo’s global community and partners to offer an end-to-end solution that enables automation within the entire lifecycle.
Omgeo is currently working diligently with clients and industry bodies to make the above vision a reality. We will leverage existing assets like Omgeo ALERT, Omgeo CrossCheck and Omgeo ProtoColl to support a broader range of requirements than just point solutions can achieve. Omgeo has a rich history of innovation and is uniquely positioned and committed to ensure that this solution is developed in close partnership with our community.
We also want to take advantage of the assets and innovations of other providers so we intend to partner with firms to ensure we obtain the key functionality to differentiate ourselves even more from our competition. This vision will, without a doubt, provide our community with the most innovative, efficient, and unique offering in the marketplace.
Dissecting the Workflow
- The arrow in between CrossCheck and ProtoColl represents the data-flow between ProtoColl and CrossCheck that brings the reconciliation process closer to the collateral workflow process. This ensures that collateral calculations are based on verified data to provide for new levels of certainty and accuracy.
- Moving through the workflow, the arrow into Omgeo ALERT Leverages Omgeo’s existing assets for SSI and SWIFT messaging, with ALERT’s capabilities and long established track record of community, ALERT can be used to provide Collateral Settlement information.
- At the bottom of the diagram, the green box illustrates the collateral call process and how structure will be brought to the communication between parties. We intend to leverage emerging standards and services around electronic messaging as a value added component for full lifecycle management. This would include communication of collateral calls, recalls and substitutions between parties. Essentially, the workflow will manage not just the communication of calls but the state of those calls which would include dispute resolution.
*Note: these components represent a solutions based approach tailored towards specific client needs (e.g. Clients can opt to use all of these components or just one if necessary)
Omgeo’s vision will inform our functional plan in the future. There are many factors like the regulatory landscape, new client demands, industry commitments and parties’ ability to adopt sophisticated infrastructure, which may in turn shift or change this vision. So, we must be responsive to customer requirements as the operational models evolve with a growing community of participants.
In the end, it is all about our community. We are engaged to provide this very community with the solutions needed to enable them to focus on their core competencies. We look forward to the engagement of our customers to execute on this vision. |
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