Securities financing workflows have always involved complex, manual processes. From collateral and margin management to post-trade event processing, legacy systems and procedures can be highly inefficient. Trading desks find themselves bogged down managing collateral in spreadsheets, coordinating stakeholders via email/phone to process events, and reconciling data across disconnected systems post-trade.
Automated platforms deliver the workflow digitisation these teams need. By automating traditionally manual workflows and coordination tasks, newer solutions help clients achieve transformative efficiency improvements.
For instance, optimising collateral schedules has always been extremely tedious and time-consuming. Newer platforms enable users to define customised, automated collateral substitution rules. Algorithms then dynamically monitor and manage collateral parameters based on predefined strategies. Optimising collateral schedules that used to take hours now takes just minutes.
Streamlining post-trade event management is another major efficiency driver. Activities like partial redemptions or modifications require intensive coordination between multiple stakeholders across siloed systems via email and phone. Newer platforms integrate and automate this event management into a unified, transparent workflow.
Across major asset classes from swaps to repos, automated workflows can yield 25-30% time savings per trade alongside dramatically lower operational risks. Users can reallocate resources towards more strategic initiatives.
Newer yet already established fintech solutions like Wematch prove that securities financing workflows can be successfully digitised at scale. The future of efficient trading is here, unlocking massive productivity gains through automation.
To learn more, reach out.
Photo by İbrahim Özdemir on Unsplash
