Itaú Asset Management has gone live on Omgeo Central Trade Manager (Omgeo CTM) and Omgeo ALERT, automating post-trade processes with their broker/dealer counterparties worldwide.
Itaú has initially automated its cross-border transactions on Omgeo CTM, and is evaluating extending the central matching capabilities to its domestic transactions in the future.
Omgeo CTM is a platform for the central matching of domestic and cross-border equity, fixed income, exchange-traded derivative (futures and listed options) and contracts for difference trades. ALERT, the industry’s largest and most compliant account and standing settlement instruction (SSI) database, automatically enriches Omgeo CTM trades with accurate SSIs.
Brazil’s exchange, Bovespa, reported a 10.6 per cent annual increase in equity trading in 2012, reaching USD1.78trn (USD871bn) in total value traded. With trading volumes increasing year over year, trade operations has moved into the spotlight. Traditionally, Brazilian asset managers have relied on proprietary/in-house and highly manual post-trade processes, including the confirmation, affirmation and matching phase. As market volumes rise, firms experience increased pressure on post-trade workflows. As a result, Brazilian firms are turning to automated post-trade processing solutions that reduce the risks and costs tied to manual processes while promoting volume scalability across their operations.
Itaú, which has more than USD160bn under management, has adopted Omgeo CTM and ALERT in an effort to leverage best practice, global solutions. Previously the firm relied on fax, email and spread sheets for its cross-border equity processes. With these services, Itaú will significantly increase efficiency and reduce the chance of trade failure.
“As the global markets have become more liquid and volumes continue to rise, automating our post-trade process became a top priority at the bank,” says Ricardo Soares, director at Itaú. “The adoption of Omgeo CTM and ALERT not only lowers overall risk and improves efficiencies, but it also demonstrates our commitment to implementing best-in-class solutions to drive our international platform and streamline interactions with our broker/dealer counterparties.”
Sheldon Warrick, executive director of global relationship management for Omgeo, says: “The Brazilian market, as well as the Latin America region, has seen significant capital inflows in recent years that have bolstered economies and increased market activity and trading volumes. That has sparked a clear drive toward trade and post-trade automation across the region. We are delighted to work with Itaú, the largest Brazilian investment manager, to deploy both Omgeo CTM and ALERT to automate their post-trade process.”