Post-trade processing utility Omgeo has bowed to the wishes of buy-side clients and agreed to re-engineer its Central Trade Manager (CTM) service to allow for local matching of transactions.
Despite mounting a strong campaign in favour of the central matching concept - in which trades conducted on behalf of fund managers by broker-dealers are processed through a central clearing utility - Omgeo has failed to lure the majority of buy-side clients away from entrenched practices for bilateral affirmation of transaction.
In the absence of a regulatory mandate for same day settlement, firms have been generally unwilling to invest in the switch to the central matching concept.
Adam Bryan, Omgeo president and CEO has admitted that it has been difficult to quantify the benefits to firms of moving to central matching, as each institution has its own unique requirements and is at different points on the automation curve.
The company has yet to make any public pronouncements on the issue, although Omgeo managing director Lee Cuttrone is understood to have informed customers of the shift in policy.