Omgeo says that over 225 investment managers worldwide are now using Omgeo Alert for FX standing settlement instructions (SSIs), with FX proving to be one of the strongest growing asset classes on the service in recent years.
The institutional post-trade provider efficiency claims that Alert is now enabling over 1,800 investment managers, brokers/dealers and custodian banks to share data worldwide.
Omego Alert was launched over 30 years ago while the use of SSIs for FX was introduced in 2007, Bill Meenaghan, director, Alert product management tells Profit & Loss. “At that time, the Securities Market Practice Group (SMPG) rules, established to create harmonised securities messaging standards, did not apply to FX so we worked with the Alert community to define the rules needed,” he adds.
According to the firm, the service currently holds over 640,000 FX instructions with a compliance rating of over 97%.
In addition to FX, the service also supports equities, fixed income, money market, cash and derivatives instructions, but it also expects the number of FX instructions to grow as new segments, including global custodians and prime brokers, begin to use the service later this year.
According to Omgeo, this growth is driven by increased demand for automation in FX post-trade operations fuelled by the 32% increase in cash-related transaction turnover since 2010.
Over the past few years, clients have also wanted to centralise their SSI data for several reasons, says Meenaghan. “Firstly, they wanted a single place to keep all of their SSI data together. Secondly, audit teams wanted a secure network over which to communicate SSI data instead of manual communication over unsecure email.”
He adds: “There has also been demand from brokers to centralise SSI data, especially for FX, as they will very likely need to do call backs with investment manager operational teams to re-check the data.”