The Indonesian arm of Schroder Investment Management has become the first Indonesia-based asset manager to sign up for post-trade processing firm Omgeo’s central matching service.
Schroder Investment Management Indonesia has gone live on the Omgeo Central Trade Manager (CTM), which processes domestic and cross-border equity, bonds, exchange-traded derivatives and contracts for difference trades.
The automated functionality of Omgeo CTM lets the asset manager mitigate operational risks related to Indonesia’s largely manual market and aligns it with the firm’s regional hub in Singapore.
The addition also brings Schroders’ Indonesian subsidiary, which is the largest asset manager in Indonesia, in line with the firm’s global operating model, which uses the central matching service in other markets. Parent company Schroder Investment Management manages some £212 billion globally.
“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 minimises risks when managers seek improvements to their operational throughputs,” Veronica Low, head of portfolio services, Asia-Pacific, for PT Schroder Investment Management Indonesia, said.
Low added the move was particularly important in the Indonesian market where the back office is constantly under pressure to report matched trades to custodians within short timeframes to ensure NAV calculation.
“With most of our equity brokers now on Omgeo CTM, 95% of our equity trades are now achieving a straight-through process. We will continue to work with our fixed income counterparties in the coming months to achieve similar rates for fixed income trades. We believe the operations team is now well placed to support future growth of PT Schroders’ business,” Low said.