Omgeo-DCV Case Study: Successful implementation of services extending beyond the core business of a depository

About Omgeo

Omgeo is a subsidiary of:Depository Trust & Clearing Corporation (DTCC)

Omgeo's objective:By automating and streamlining post-trade operations, Omgeo enables clients to accelerate the clearing and settlement of trades, and better manage and reduce their counterparty and credit risk. Across borders, asset classes, and trade lifecycles, Omgeo is the global standard for post-trade efficiency across the investment industry.

Omgeo – Automating post-trade lifecycle events

Omgeo's Global Coverage

Omgeo meets the needs of 6,500 financial services firms in 52 countries.

Omgeo Central Trade ManagerSM

Central Trade

Manager

Investment Manager Broker/Dealer

A single post-trade transaction processing service, providing a common central matching platform for equity, fixed income, and exchange-traded derivative (futures and listed options) transactions, where investment managers and broker/dealers can interact in both domestic and cross-border markets.

Potential for growth and new business lines

Other successful partnerships between Omgeo and Depositories in the following countries:

JapanKoreaUSACanada

Joining forces increases efficiency and productivity:Better market insightPost-trade experience

A service tailored to local clients

Generation of new ideas and initiatives

Omgeo-DCV Joint Venture

Trade Flow Overview

    

Omgeo CTM

Chilean Broker

Settlement Notification

ALERT

Allocations Allocations

BlockBlock

Status updates

ContractsInvestment

Manager

Custodian Bank

Third PartiesVia SWIFT or CSV over

SFTP

Status updates

Block

Increase operational efficiency: Eliminates delays that can lead to increased risk of failed trades and higher costsCentralizes data

Reduce costs: Eliminates errors that exist in manual and verbal communicationsAvoids duplication of workMinimizes back-office costs

Automate trade lifecycle events across all markets and asset classes:

Electronic trade matchingSame-day trade confirmationDrastically lowers risk and cost of failed trades

Streamline post-trade operations to achieve Straight-Through-Processing:

Real-time communication of allocations, trade confirmations, and affirmations

The result? Increased efficiency and decreased operational risk and costs

Key Benefits

Chilean Brokers registered with the service

New CFI Service(Copy For Information)

    

Background:In discussions between Omgeo, local brokers in Chile and DCV, improvements to the procedures currently used by local brokers and their global brokers (broker to broker flow) were identified.

Challenges:• Once trades have been confirmed with the final investors, global brokers complete their

internal processing and then send the trade allocations to the local brokers. As this process is not automated, there are delays in the flow of information.

• Local brokers have to consolidate all the information from their global brokers and determine the local custodian to launch the settlement process, with very tight deadlines for each task.

Solution: The (DVC-local Chilean brokers-Omgeo) Working Group has resolved this problem for their local market... and potentially for your market as well.

CFI Workflow(Broker-Broker Flow)

Global BrokerInvestment

Manager

Global Custodian

Omgeo CTM

Settlement Notification

ALERT

Local BrokerLocal Custodian

Order

Executed at SSE

Match Match

Allocations / Invoices

Allocations

AllocationsAllocations

Trade Confirm Trade Confirm

OrderCopy for

Information

(Allocations)Confirm

Upcoming Projects

  

Implementation of Omgeo Central Trade Manager for the Buy Side in Chile

Use of Omgeo Central Trade Manager for domestic trades between local participants (brokers and investment managers)

Analysis of potential straight-through-processing from trade execution to settlement

Reference Data services

Omgeo-DCV Case Study: Successful implementation of services extending beyond the core business of a depository