Brown Brothers Harriman (BBH) has become the first global custodian to go live on a new settlement service operated by Omgeo.
The Omgeo ALERT GC Direct service, seeks to improve the management of account information and Standing Settlement Instruction (SSI) data related to the trade settlement process between global custodians, funds and investment managers.
Under the agreement, BBH is able to provide electronic SSI data to its clients through GC Direct.
“BBH is committed to implementing best-in-class solutions and to working with the industry to mitigate risk and enhance SSI data quality. We’re pleased to work with Omgeo using GC Direct in our efforts to deliver improved operational and cost efficiencies to our clients and their investment managers,” says Ray Tyrrell, senior vice president, BBH.
According to Paula Arthus, CEO of Omgeo, she anticipates further participation from custodians and asset managers.
“As the industry continues to reduce risk throughout the trade lifecycle, and with a large number of markets having moved to a T+2 settlement lifecycle, firms are facing increased pressure to ensure efficient, transparent processes are in place across their operations,” she says.
“Further automation of SSI data within custodian banks using ALERT will introduce greater control in the process, improve data quality standards and reduce the risk of trade failures resulting from incorrect SSI data.”