Omgeo and TradeWeb Partner to Create Fully-Integrated Trade Processing for Fixed Income
New York, NY, Jersey City, NJ (November 14, 2007) - Omgeo and TradeWeb have entered into a strategic alliance to provide the U.S. fixed-income industry's first fully-integrated trading and straight-through trade processing service. Under this agreement, Omgeo will offer a seamless, no-touch STP solution, from execution to matching, utilizing Thomson TradeWeb's TradeXpressSTPSM technology.
From a single point of access, investment managers and broker dealers will have the ability to electronically manage and monitor the entire life-cycle of their fixed-income trading and pre-settlement activity, from block trade execution to sub-account allocation to matching and confirmation. This will enable them to reduce risks and costs associated with manual fragmented processes on multiple platforms.
"We are offering clients an unmatched opportunity to drive down both the cost of trade processing and the settlement and market risks inherent in the trading workflow," said Jim Toffey, CEO of TradeWeb.
"We have responded to our mutual clients' requests for closer interoperability between TradeWeb and Omgeo. This unique partnership will undoubtedly bring significant efficiency gains to the industry," said Marianne Brown, President and CEO of Omgeo.
By linking together their existing STP systems -- TradeXpressSTP and AccountNet, TradeWeb's online STP network and settlement instructions service, and Omgeo OASYS-TradeMatch and Omgeo ALERT, Omgeo's US domestic trade allocation, acceptance, matching and global settlement instruction services -- Omgeo and Thomson TradeWeb strive to achieve a unique level of system interoperability between industry partners. The Omgeo offering will support a comprehensive range of fixed-income security types, processing client trades executed either by voice or electronically. It will be closely integrated with TradeWeb's leading online marketplaces for fixed-income securities, providing the first complete workflow solution covering all phases of trade processing, from the trading desk through to the depository.
More precisely, investment managers will be able to take advantage of the following fixed-income capabilities via Omgeo:
Block trade check-out to allow investment managers to respond electronically to phone trades entered by broker/dealers
Seamless trade processing from trade execution through to Omgeo's US post-trade processing
Automatic appending of broker/dealers' internal account numbers to allocations when used in conjunction with Omgeo ALERT or AccountNet
Allocations sent from investment managers to broker/dealers automatically following trade execution
A new integrated, real-time STP trade processing blotter
Trade details and allocations accepted or rejected on the same business day as execution to ensure all details are correct prior to settlement
Development work for the end-to-end fixed-income solution is already underway; details regarding the timing of the official launch and roll-out of asset-class and dealer coverage will be announced in early 2008. In order to effectively address market issues and gather feedback on future product development direction, Omgeo will form a client advisory group that will consist of current Omgeo and TradeWeb clients. In addition, a joint governance committee will be formed by the two firms in order to make strategic decisions regarding the new service.
Omgeo plays a core role as the orchestrator of post-trade pre-settlement trade management within the global securities industry. With more than 6,000 users in 42 countries around the globe, Omgeo acts as a central hub and go-to resource for solutions that expedite information flow and connect systems in order to fuel productivity, reduce costs and minimize risks for investment managers, broker/dealers and custodian banks. Through a resolute commitment to working with the industry and all its parts to continually drive efficiency, Omgeo has achieved a stature that is unmatched in its field. Omgeo's expertise goes beyond its products and services delivering the most robust and sustainable solutions to its clients by coordinating all available resources in the marketplace. Firms count on Omgeo's rich experience as a solutions provider and its well-established relationships with regulators, industry associations and third-party service providers to help them navigate through a continuously changing industry landscape. For more information about Omgeo and its STP solutions, go to www.omgeo.com
About Thomson TradeWeb
Thomson TradeWeb is the leading online fixed-income trading network with over 12 million trades executed and total volume surpassing $200 trillion since its inception in 1998. TradeWeb's multi-dealer auction model links the trading desks of 35 of the world's leading Fixed-Income dealers with more than 2,200 buy-side institutions in North America, Europe, and Asia. Over $250 billion in trading volume gets executed over TradeWeb each day. The business is also the leading electronic "straight-through processing" network for the fixed-income markets, providing dealers and buy-side institutions with paperless trade allocations and confirmations on its fully-integrated TradeXpressSTP network. The TradeXpressSTP network includes AccountNet, the first derivatives counterparty management tool and the leading data warehouse for standing settlement instructions and OTC derivatives legal documentation. TradeWeb operates within the Thomson Financial group of businesses. TradeWeb LLC is a member of FINRA. TradeWeb Europe Limited is regulated by the U.K. Financial Services Authority.