Indonesia’s largest investment manager goes live on Omgeo Central Trade Manager
Omgeo, the global standard for post-trade efficiency, today announced that PT Schroder Investment Management Indonesia (“PT Schroders”) is the first Indonesian asset manager to go live on Omgeo Central Trade ManagerSM (Omgeo CTM), Omgeo’s domestic and cross-border central matching service for equity, fixed income, exchange traded derivatives (futures and listed options) and contract for difference trades.
PT Schroders is the largest investment manager in Indonesia. Globally, Schroders manages £212.0 billion as of December 31, 2012. By utilizing Omgeo CTM in Indonesia, PT Schroders’ local operation is now aligned with Schroders’ global operating model, which also uses the central matching service in other markets.
The adoption of Omgeo CTM in Indonesia introduces automation to this largely manual market and enables PT Schroders to mitigate operational risk and increase efficiency while using a single platform for the seamless communication of international and domestic trade details with broker/dealer counterparties. This will also enable Schroders’ Regional Processing Hub, which is currently supported out of Singapore, to build contingency across its regional operations.
In addition, PT Schroder Investment Management is partnering with Omgeo to reach out to the Indonesian broker community to advocate the importance of automating post-trade processes in addressing operational risk and aligning with global best practice.
Veronica Low, head of portfolio services in Asia-Pacific, said: “As the largest investment manager in Indonesia, it is important that we take the lead in helping the industry move forward on automation as it minimizes risks when managers seek improvements to their operational throughputs. This is particularly important in the Indonesian market where the back office is constantly under pressure to report matched trades to the custodians within a very tight turnaround time for NAV calculation.”
Ms. Low added, “With most of our equity brokers now on Omgeo CTM, 95% of our equity trades are now achieving a straight-through process (STP). We will continue to work with our fixed income counterparties in the coming months to achieve similar STP rates for FI trades. We believe the Operations team is now well placed to support future growth of PT Schroders’ business.”
“As funds under management in the ASEAN region grow, investment managers will need to adopt more effective methods for managing their post-trade processes and communicating with their trade counterparties,” stated Nellie Dagdag, executive director in Asia Pacific, for Omgeo. ”We are very pleased to have worked alongside PT Schroder Investment Management on this important initiative in Indonesia, and we look forward to working together to bring increased levels of automation and reduced risk to the local market.”