PT Schroders Investment Management Indonesia became the first Indonesian asset manager to live on Omgeo Central Trade Manager (CTM), a post-trade central matching service that mitigates operational risk.
PT Schroders, which is the largest investment manager in Indonesia, managing about 212 billion British Pounds as of Dec. 31, 2012, will utilize the single platform for communications of international and domestic trade details with broker/dealer counterparties. The post-trade platform matches trade details for equity, fixed income, exchange traded derivatives and contract for difference trades.
The adoption by PT Schroders of the post-trade matching platform brings automation to a largely manual market in Indonesia. According to the release, this will enable Schroders’ Regional Processing Hub, currently supported out of Singapore, to build contingency across its regional operations.
In addition, PT Schroder IM is partnering with Omgeo to reach out to the Indonesia broker community to advocate the importance of automating post-trade processes as a way to address operational risk and align with global best practice.
Commenting in today’s release, 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 that with most of PT Schroder’s equity brokers now on Omgeo CTM, 95 percent of the firm’s equity trades are now achieving a straight-through process (STP). Low said the asset management firm would 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.”
According to Nellie Dagdag, executive director in Asia Pacific, for Omgeo, “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.