Recently we have seen financial technology providers joining forces with each other in order to create better solutions and processes that will keep financial institutions compliant with the new regulations we all face. Just last week, we saw the DTCC, MarkitSERV and AcadiaSoft join together to streamline OTC derivatives processing, and this week another new partnership is underway.
Markit Document Exchange, an online platform used to exchange documentation securely and efficiently will unite with Omgeo ALERTSM, a web global database for the maintenance and communication of standing settlement and account instructions. Together these two systems will help identify the counter party and access its associated documents in order to successfully open an account. This new automated process will not only lower operational costs and settlement times, but it will also lower the risk of failed trades.
Omgeo and Markit have decided to link their services because of the need to enhance and standardize the way buy-side and sell-side firms communicate and exchange documents required for opening and maintaining accounts. Not only have these two companies united the buy-side and sell-side in order to ease the number of man hours behind reconciling and creating accounts, but they have also received the support of many financial firms who believe in the need to standardize the way documents used for storing and managing accounts are organized.
This is a great step for the industry towards automation and global standardization and making the new post Dodd-Frank financial industry that much more efficient. Plus making new friends is always fun!