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Omgeo and DTCC to build global hub for SSIs
17 September 2013
Omgeo and DTCC to build repository for standing settlement instructions
Post-trade firm Omgeo and the Depository Trust & Clearing Corporation (DTCC) have announced a partnership to create a global hub for standing settlement instructions (SSIs), building on Omgeo's Alert system.
The two firms said the creation of the user-governed database was part of a wider effort to standardise and centralise key reference data.
The repository, which will be built on Omgeo's online Alert database, will store and communicate the 'golden copy' of the SSI. SSIs include vital settlement data such as counterparty account numbers, currency code, security type, BIC and place of settlement and are used to speed up settlement.
Mark Bouchea, executive director of product management at Omgeo, said the establishment of the hub would help drive efficiencies and reduce costs in trade processing.
“The ability to access properly maintained SSIs is a key factor in operational risk mitigation, particularly as the global momentum towards shorter settlement cycles increases. The highest degree of accuracy will be needed in order for firms to adhere to shorter settlement time frames,” he said.
Omgeo and DTCC said the first phase of the project – to enable global custodians and prime brokers to update and maintain accurate SSIs in Alert – was expected to be implemented in early 2014.
Ultimately, the hub aims to have 100% compliance with local market standards and SSI data quality; will provide open access through standard interfaces; will establish a robust SSI exception process to manage and resolve SSI-related errors; and will aim to have 100% asset classes and market coverage in all major jurisdictions.
Andrew Gray, managing director and head of core business management at DTCC, and chairman of Omgeo’s board of managers, said the was “a tangible example” of industry efforts to standardise and centralise key client reference data.
“It is well known that inaccurate, non-automated SSIs are a primary reason for trade failures, and this initiative will significantly contribute to significantly improving the control environment in this critical area,” he said.