JPMorgan Investor Services (JPMIS) has become the first custodian to implement a full ISO15022-compliant setttlement instruction interface to post-trade messaging hub Omgeo Central Trade Manager.
The link provides a direct interface between the CTM and JPMorgan via the Swift network. Under the new link, trades patched through the CTM by investment managers may be matched and sent directly to JPMIS for processing. This eliminates the need for the investment manager to send a seperate custodial instruction. The first client to make use of the facility is Royal London Asset Management.
JPMorgan built the link to the CTM at the request of Royal London, but says it is generic and high volume and can be applied by any CTM user who is also a client of JPMIS. The service is offered by JPMIS to its clients at no additional cost
The move is a big step forward for Omgeo, which has struggled to migrate users from its existing Oasys Global electronic trade confirmation system. The arrival of a global custodian at the CTM hub shortens the loop between trade confirmation and instruction with demonstrable benefits to all participants in the chain.