October 03, 2013

To reduce risks and cost in post-trade processing, Depository Trust & Clearing Corporation (DTCC), a post-trade financial services company for clearing and settlement, has announced a total acquisition of Omgeo, a solutions provider for automating post-trade processes.

DTCC and Thomson Reuters previously served as equal owners and strategic partners of Omego since it formed in 2001. Reuters will continue to be a service provider to and partner with Omgeo, according to a release.

“Working together with Omgeo under a single integrated global strategy for post-trade processing, DTCC will leverage the strengths and breadth of both organizations to create valuable services for our mutual clients and reduce related costs and risks,” says Michael Bodson, president and CEO of DTCC. “The integration of Omgeo’s international buy-side clients with DTCC’s community of clients will create new opportunities for growth.”

Omgeo will be a subsidiary of DTCC with Marianne Brown continuing to serve as President and CEO of Omgeo and reporting to Bodson. As a subsidiary, Omgeo will also continue to be overseen by a Board of Managers, comprised of mostly industry representatives.

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Brown adds, “we are excited about the transaction as it enables DTCC and Omgeo to facilitate a unified strategy around key industry initiatives including the move to trade date affirmation of institutional trades, settlement matching DTCC’s subsidiary, Depository Trust Company (DTC), and the adoption of shorter settlement cycles in various markets.”

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Zarna Patel is a staff writer for InformationWeek's Financial Services brands, which include Bank Systems & Technology, Insurance & Technology and Wall Street & Technology. She received ...