The Depository Trust & Clearing Corporation (DTCC) has agreed to acquire Thomson Reuters' 50% stake in post-trade processing specialist Omgeo.
US headquartered DTCC already owned 50% of Omgeo. The company was set up as a joint venture between the DTCC and Thomson Reuters in 2001. Thomson Reuters will remain a key service provider and partner of Omgeo.
The acquisition will enable the DTCC to expand more broadly into the global post-trade sector and will see Omgeo continue to grow its core business.
Omgeo provides straight through processing for international post-trade processing. It offers an electronic allocation engine, central matching solution and an account and standing settlement introduction (SSI) database.
DTCCs managing director of core business management, Andrew Grey, said: "Full industry ownership enables market participants to play a larger role in shaping decisions related to Omgeo's technology platforms and processes, that in turn help support their own firms' strategies."
The deal will enable DTCC and Omgeo to drive a single, global strategy in post-trade processing and settlement. They will also adopt a unified strategy for important industry initiatives, including trade date affirmation, settlement matching and the adoption of shorter settlement cycles.
DTCC said these initiatives will provide value to investment managers, broker-dealers, custodian banks and other market participants.
Marrianne Brown, president and CEO of Omgeo, added: "With tighter synergy with DTCC, we have the ability to leverage best practices from both firms and foster a single, integrated strategy for global post-trade processing.
Financial details of the deal were not disclosed and the transaction is subject to regulatory approval.