Omgeo has added new global custodian and prime broker automation capabilities in its update of Omgeo ALERTSM, the online global database for the maintenance and communication of account information and standing settlement instructions (SSIs). 

Alert 5.0 includes the global custodian direct feature, which enables global custodians and prime brokers to electronically maintain timely and accurate SSI data in Alert, rather than investment managers performing these updates manually.

“By enabling global custodians to access and update Alert automatically via Global Custodian Direct, we add significant efficiency and risk reduction to the industry," said Dick Taggart, a member of the Omgeo board of managers and executive vice president at State Street, also serving as chairman of DTCC’s SSI utility product governance committee. 

"SSIs will be more complete and accurate, which helps reduce fail risk, and Omgeo’s establishment of a true SSI Utility under the DTCC umbrella reduces costs and risk for all subscribers and participants.”

The new feature allows global custodians and prime brokers to better offer clients the additional service of efficiently maintaining and providing SSI data. This should reduce clients’ operational risk and costs. 

Over recent years, there has been growing demand for global custodians to engage in the maintenance of SSIs on behalf of their clients, according to Omgeo.

“Asset managers have traditionally maintained SSIs for their accounts, however custodians have always been the source of this data, where each account settles and holds its assets. Omgeo created ALERT to enable asset managers to maintain their SSIs in a central repository for brokers to access, driving value for these segments”, said Bill Meenaghan, executive director of Alert product management at Omgeo. 

Subsequent phases in the development of Alert will expand asset class coverage in the service, as well as offer an enhanced API for brokers, asset managers and third party transaction services to retrieve SSI information in real-time during trade processing, reducing the need to maintain disparate databases.

An initial group of five custodians, including State Street, are planning to go live with the Omgeo Alert Global Custodian Direct feature in 2015. 

"We expect high participation from the entire custodian bank community to follow shortly,” added Meenaghan.