Broker-dealer and investment manager clients of Omgeo, a provider of post-trade efficiency applications, can outsource their confirmation recordkeeping obligations under the federal securities laws to Omgeo after the Securities and Exchange Commission (SEC) has granted the vendor two no-action letters. As such, Omgeo TradeSuite Confirm Archive is now available to all TradeSuite clients, according to a press release from Omgeo.
The first SEC letter (PDF) was issued on March 19 and permits Omgeo to maintain and preserve confirmations for broker-dealers participating in its TradeSuite service in satisfaction of Securities Exchange Act Rules 17a-3 and 17a-4.
The second SEC letter from August 14 permits Omgeo to maintain and preserve confirmations on behalf of investment advisers that participate in its TradeSuite service in satisfaction of Investment Advisers Act Rules 204-2(a)(7), 204-2(b)(3), and 204-2(g).
In an effort to streamline the archiving process and eliminate redundant effort, Omgeo petitioned the SEC for the no-action letters to allow both buy- and sell-side firms participating in Omgeo TradeSuite to outsource their confirmation recordkeeping obligations under the federal securities laws to Omgeo. The TradeSuite Confirm Archive service essentially replaces clients' current confirm storage method with an online self-service system, which reduces risk and cost, as well as streamlines processes across the industry.
The TradeSuite Confirm Archive service is Web based, so no implementation or testing is necessary. TradeSuite clients have access to seven years of electronic confirmations and can access the functionality as soon as they receive a username and password. The service is built on DTCC's PBS SMART/Search application, allowing clients to access the Confirm Archive service under Omgeo Reports.
"We are extremely appreciative to receive this no-action letter from the SEC," said Lee Cutrone, managing director, industry relations at Omgeo, in a press release. "Because of this, Omgeo can now take the administrative and regulatory aspects of confirm archiving off our clients' plates. Users will no longer have to concern themselves with confirmation archiving, as Omgeo will handle the entire process seamlessly and in real-time. Redundant and costly measures are particularly burdensome in today's market so we are pleased that the SEC recognizes Omgeo TradeSuite Confirm Archive service as a means to streamline the industry." Greg MacSweeney is editorial director of InformationWeek Financial Services, whose brands include Wall Street & Technology, Bank Systems & Technology, Advanced Trading, and Insurance & Technology. View Full Bio