Evolution of OASYS, Omgeo, and Central Trade Manager
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Transcript of Evolution of OASYS, Omgeo, and Central Trade Manager
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What This Presentation CoversThis presentation provides a history
and overview of: The OASYS product line The ALERT service The formation of Omego Central Trade Manager product
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Order Allocation System (OASYS) In 1990 Thomson began offering the
Order Allocation System (OASYS) service
Automates post trade allocation and confirmation
Replaced phone, faxing, emailing post trade data between brokers and institutional customers with software and messaging
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OASYS Initial Architecture
Standardized and automated the workflow of post trade allocation and confirmation for US domestic trading.
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OASYS Workflow (Simplified)
Used for US domestic trades. Commission, taxes, net amount, etc. calculated by the buy side and confirmed by the sell side.
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ALERT ALERT is a global service/database for
storing and communicating account information & standard settlement info (SSI)
Standardized communication of account info Supports SSIs for different product &
geographies Buy side puts account info & SSIs in ALERT
and sell side, custodians, etc. use that info Sell side also puts SSI info in ALERT
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How is ALERT used by OASYS Buy side can identify the accounts
on allocations by their account ALERT Access Code
Sell side maps account ALERT Access Codes to their internal account ids
Systems down stream from OASYS use SSI & account info from ALERT to settle the trade
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More on ALERT ALERT is important for post trade processing ALERT is largest service/database of account
info If ALERT not used, another account info
service/database must be used or investment manager & broker must agree on how to identify accounts and settlement instructions
Each broker likely has a different internal account id and settlement instructions would need to be communicated to each broker
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OASYS File Import/Export
Via file import/export OASYS can be directly interfaced to buy side and sell side OMS,
Middle Office, etc. Completely automates the process. Key for STP.
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OASYS Direct
Interface directly to OASYS host server via API middleware
connection over a WAN, eliminates the need for OASYS Workstation.
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OASYS Global OASYS supports US domestic
trading but not global trading OASYS Global was created to
support global trading Global trading is more complicated It has different workflow and
messaging than OASYS (domestic)
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OASYS Global Architecture The OASYS Global architecture is
similar to OASYS (Domestic): Central OASYS Global host server OASYS Global workstations File import/export integration OASYS Global Direct
But the workflow is different
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OASYS Global vs OASYS (Domestic)Major workflow differences: Sell side sends block & buy side must
match block Match may not be exact, has tolerances Sell side calculates net amount of trade
and allocations including taxes and fees Buy side can use sell side’s net amount
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OASYS Global WorkflowBlock Level (Simplified)
To accept or reject a block trade, the buy side must match it to a block trade in its OMS. Amounts may differ within
tolerance.
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OASYS Global WorkflowAllocation Level (Simplified)
Net amount including commission, taxes, fees, calculated for each allocation by broker. Often the buy side uses those
figures.
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OASYS Global & Matching Matching the details of global trades
is complex, trade often don’t match exactly
Blocks and allocations are matched within a tolerance that often depends on currency, type of security, etc.
Calculation of net amount is complex
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AutoMatch Many buy side systems don’t have the
functionality to match & reject trades flexibly
AutoMatch was created by Thomson to do the matching for buy side systems
It can do complex matching with tolerances and also handle when the buy side uses the sell side’s net amounts because global net amount calculation is very complex
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Automatch Architecture
Block trades w/ allocations sent to AutoMatch, AutoMatch does matching & rejecting, sends matched allocations w/
net amounts to the buy side OMS/Middle Office.
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More On Matching Block & allocation matching done at 2 levels 1st level are parameters that must match 2nd level are parameters need to complete
the match Fields used for matching can be customized
& tolerances can be specified If not matched 1st level, trade is unmatched If matched 1st level, but not 2nd level, trade
is mismatched Matches can be forced if necessary
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Formation Of Omgeo Joint venture 50% Thomson Financial
and 50% DTCC created in 2001 Created in response to a competing
industry wide initiative to create a global trade matching & settlement service, GSTPA backed by SWIFT (that initiative eventually collapsed)
Omego is the combination of Thomson’s OASYS product line & ALERT with DTCC’s TradeMatch product line
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Central Trade Manager Omego created Central Trade
Manager Its functionality is a combination of
OASYS Global, AutoMatch, and DTCC’s TradeMatch functionality
It handles post trade allocation & trade confirmation plus settlement instruction enrichment & settlement notification to custodians/agents/etc.
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CTM Architecture
Then replaced OASYS Global on the sell side. OASYS Global & AutoMatch were retired.
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CTM Workflow The CTM workflow for matching & trade
confirmation is similar to OASYS Global with AutoMatch
Block = CTM TradeLevel Allocation = CTM TradeDetail Once a trade is matched, its settlement
instructions can be enriched from ALERT, other sources, & manually
Settlement notifications can be sent to custodians/agents/etc via SWIFT or data files
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OASYS (Domestic) & TradeSuite OASYS (Domestic) continues to be used
for US post trade allocation & confirmation
It has been integrated with TradeSuite Trades confirmed in OASYS can be
sent/matched to TradeSuite data Settlement instructions can be enriched
from ALERT, other sources, & manually Settlement notifications can be sent to
custodians/agents/etc
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Omego Fully Owned By DTCC 2013 DTCC purchased the
remaining 50% from Thomson Financial
DTCC is owned by a consortium of banks & brokers
DTCC is operated not just to make a profit, but also to help their owners