Omgeo, the global standard for post-trade efficiency, announced today that it has added CLS FX instructions to Omgeo Alert, to improve the way FX settlement instructions are published, stored and exchanged. Additional fields have been added to Omgeo Alert, the industry’s largest and most compliant web-based standard settlement instruction (SSI) database across multiple asset classes, to accommodate CLS settlement instructions.
This initiative, which was developed in direct response to client demand, will enable industry participants to, electronically and in real-time, publish and exchange accurate FX instructions settled in CLS. At present, most FX settlement information is communicated manually which leads to erroneous settlement instructions, one of the biggest causes of failed trades and a significant source of operational risk and cost. Now users will be able to store and access all of their FX settlement instructions in one place, eliminating the need to go to multiple sources.
Commenting on the Omgeo Alert-CLS solution, John Burchenal, managing director, market growth, Omgeo, said, “This joint effort pairs the two giants of the post-trade world – Omgeo, the largest community in the industry publishing SSI instructions across multiple asset classes, and CLS, the industry provider for FX settlement. It is our goal to significantly reduce operational risk and cost by enabling counterparties to safely and efficiently exchange the necessary validated information to facilitate CLS settlement.”
Adding to this, Jonathan Butterfield, director, communication, CLS Group, said, “From an operational perspective, CLS participants will benefit from being able to add CLS instructions into their existing SSI database – Omgeo Alert. They will no longer need to go to multiple places for settlement instructions for different asset classes or use different methods for accessing settlement instructions for FX. This brings the community one step closer to end-to-end FX processing and extends the high quality risk reduction delivered by CLS to a broader audience.”
Omgeo Alert 2.5 with CLS functionality is now live, meaning that Omgeo Alert now holds equity, fixed income, derivatives, non-CLS FX and CLS FX settlement instructions, making it the most comprehensive central settlement instruction database in the world.