Omgeo, a wholly owned subsidiary of $23 trillion Depository Trust & Clearing Corporation of the US and Thomson Financial, has received the Foreign Investment Promotion Board (FIPB) clearance for starting its operations in India.
The company, which offers a full-range of trade management solutions including transaction, information and performance services as well as an e-commerce community, is looking at the Indian financial markets with great optimism.
The company will soon be introducing its suite of trade management solutions for the domestic markets.
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It will help clients to move from traditional trade processing methods to a single global workflow solution for trade management to improve and enable shortened settlement cycles to the point where, eventually, most trades can be settled the same day they occur.
"We are very optimistic about this Indian market. We are fully aware of the fact that the financial markets here are in a terrible turmoil, but according to us we are entering this market at the right time when regulations are going to come about and the markets will improve," said James E Drumm, managing director, Asia-Pacific, Omgeo Pte, Singapore.
"The regulators are looking at having an efficient trading system which will increase volumes and thereby improve the market conditions. Right now most fund managers and people in the market feel that this is a temporary blip," he added.
Omgeo is looking at being a long-term player in India.
The company has chalked out a strategy whereby it will work with both the domestic and cross-border brokers and financial services companies to enable and improve efficiencies.
"Our electronic trade confirmation (ETC), which is a part of the intelligent trade management solution will create transparency and global standards and efficiencies in trading and also brings about cost cuts which is of prime importance today. We want to be part of the this whole transformation process that is taking place here," said Drumm.
He further added: "At this point of time our only goal is to invest time into our clients base and help it grow." Omgeo has an impressive list of clients globally. Omgeo will be bundling its products to a price sensitive strategy. This in turn will be in line with the present economic conditions. The company is also looking at partners namely a client-customer type partnership to push its solutions.
Omego is a $200 million company and its board comprises representatives of Morgan Stanley, Bank of America, Merrill Lynch, Deutsche Bank and Goldman Sachs.
The company is hoping to clock revenues to the tune of $50 million in Asia Pacific by 2005 of which, they are projecting revenues to the tune of $10 million from India alone.