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September 2, 2013

Utility Buys Out Thomson Reuters' Omgeo Stake

By Gregory Bresiger

Having more control of trade processing will help the clearing industry's utility find more middle- and back-office clearing solutions.

That's what officials of the Depository Trust & Clearing Corp. said will happen after it completes its recently announced acquisition of Omgeo, now jointly owned with Thomson-Reuters.

"Omgeo's global community and multi-asset class capabilities will create new opportunities as DTCC looks to grow and expand its global post-trade processing services," said Andrew Gray, managing director, core business management, and chairman of the board of managers for Omgeo.

"With the industry focused on reducing risk and cost in the post-trade processing environment as the regulatory landscape continues to evolve, DTCC identified this as an opportunity to continue to strengthen middle- and back-office capabilities for the benefit of its participants and the broader financial markets," Gray said.

What will DTCC be working on with Omgeo?

DTCC officials said they are working on trade date affirmation, settlement matching in the DTCC and the adoption of shorter settlement cycles in various markets. Under the deal, Omgeo will become a fully owned subsidiary within DTCC.

Omgeo, which was formed in 2001, automates trade life-cycle events between investment managers, broker-dealers and custodian banks. It connects and offers operational services for some 6,500 clients and 80 technology partners in 52 countries.

DTCC officials said the addition of Omgeo's global buyside client community will enable DTCC to build on its services for its customer segment. DTCC's clientele includes the broker-dealer and bank community.


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