Chinese connections bring the trading world closer
investment managers become more connected with the international trading
community through increased activity overseas and gradual adoption of global best
practices, counterparty risk measures are becoming more important, according to
Omgeo, the post-trade solutions specialists.
recently tied up with Chinese software provider Shenzen YSS Tech to bring
greater automation to cross-border equity and fixed income trade processing for
will link Omgeo’s Central Trade Manager – an international and domestic equity
and fixed income transactions matching system – with YSS Tech’s GoldenFinger – a
financial valuation management product – and SPOMS, an investment transaction
the solutions link YSS Tech’s financial valuation system and investment
transaction management system for Omgeo CTM through a data bridge, the design
provides a solution for users of either YSS product as well as those using both
products at the same time,” said Chen Zhenfei, vice president of YSS Tech’s
investment managers will now be able to benefit from increased settlement
efficiency and reduced counterparty risk on international transactions, as well
as connecting with Omgeo’s worldwide network of 6,500 brokers and investment
managers through a local-language interface.
inception of the Qualified Domestic Institutional Investor (QDII) program in
2007, Chinese investment managers have become more sophisticated in terms of
diversifying investment strategies and risk/compliance controls, according to
Cornelia ‘Nellie’ Dagdag, executive director of sales and solution delivery at
Omgeo. “This is reflected by the overwhelming reaction to the adoption of
electronic trade confirmation solutions in the market.”
speeding up the process of internationalisation, and our clients are gearing up
to adopt global best practices and standards,” Dagdag told the TRADEnews.com.
QDII firms have grown to be more selective and informed in their cross-border
trade investment choices, according to Dagdag.
firms initially started investing beyond their borders, they had gone mostly
after the brand names. Now, based on multiple factors, we have seen that many
regional brokers are winning business from these Chinese firms,” said Dagdag.
between the buy-side and sell-side are also undergoing changes, suggested
Dagdag, with “Chinese QDII investment managers demanding higher standards from
their brokers,” including the provision of proper counterparty risk management
gained significant market share in China since its entry in 2009, with eight
out of the top 10 QDII funds – as ranked by chinafund.cn – using Omgeo CTM to
match cross-border trades, by April this year.
YSS Tech’s GoldenFinger system enjoys more than 85% market share in China.
Established in 2001, YSS Tech provides software solutions to companies across
the financial services spectrum in the mainland.
connectivity between Chinese investors and their global counterparts does
continue to become more convenient and commonplace, the obvious loser would be
Hong Kong, which has been benefiting in recent years from its status as a
conduit between the two.