Omgeo, a provider of post-trade pre-settlement trade management technology to funds managers, has responded to what it views as over-collateralisation by funds managers with a new acquisition.
Omgeo has purchased Allustra, a London-based provider of collateral management solutions. Allustra offers a suite of products that provide customers the ability to consolidate trade positions across asset classes, including OTC derivatives, and to manage the collateral process that mitigates the associated counterparty risk. Mark James, managing director of Allustra, has joined Omgeo’s executive committee as managing director. In addition, Omgeo has acquired a derivatives portfolio reconciliation platform designed by Global Electronic Markets (GEM), after piloting the technology with one of the world’s largest brokers/dealers and what it claims is one of the most sophisticated hedge funds in the world. Marianne Brown, president and CEO of Omgeo, said: “By acquiring Allustra, Omgeo can provide its community access to the leading collateral management solution available today. Combining this with GEM’s unique derivatives reconciliation technology means we are poised to truly change the way the industry manages counterparty risk.”
Future Fund chief investment officer Ben Samild said that FY24 has been a great year for alpha creation, thanks to strong returns in equities and, unusually, across multiple hedge fund strategies all at the same time. He reflected the past few years have been “a difficult time to be an asset owner and to generate positive returns for risk assets” but the Future Fund is tracking well of its long-term mandate.
Simon Hoyle and Darcy SongSeptember 4, 2024
