Post-trade matching and confirmation is a key, yet sometimes overlooked, part of the trade life cycle and increasingly subject to regulatory scrutiny. For over two decades, the post-trade portion of an institution’s allocation and confirmation workflow was done one of two ways:
- Through the Omgeo suite of services
The manual process is extremely time-consuming, difficult to scale and prone to human error. Thus, as the only automated option available, Omgeo became the incumbent in the market.
The first shake-up to the post-trade matching world came in 2015 when the SEC decided to let other players join the post-trade party. Despite attempts from competitors to enter the arena, none successfully delivered a competing product until the fall of 2016. NYFIX, then already the industry leader in FIX trading and connectivity, introduced NYFIX Matching, a FIX-based allocation matching solution. The aim was to finally bring post-trade into the modern age, reflecting the real-time nature of the financial markets.
"NYFIX Matching has since quickly gained market share and successfully migrated customers off of Omgeo Oasys, in addition to onboarding customers who were still performing post-trade tasks manually.
In late 2019, Omgeo’s parent company, Depository Trust & Clearing Corporation (DTCC), announced the decommissioning of Oasys, their platform for US-based clients, with the intention to migrate users to the global platform Omgeo CTM.
This latest shake-up begs the question: just because a technology is first in the field, does that also make it the best? With the forced migration off Oasys set for spring 2021, now is the time to look at the other post-trade options.