Few products are as complex as Total Return Swaps (TRS) and that’s a significant challenge when it comes to cash flow management. As anyone who trades in TRS products can testify, financial institutions can spend hours if not days mapping how changes to trades affect cash flows. This is an almost Sisyphean task of trawling through error-strewn datasets, and one that requires large reconciliation teams to complete successfully. To date, there’s been no real alternative given that even small errors in reconciliation can lead to increased operational risk. 

The Holy Grail has been for an approach that significantly reduces the time, resources, and effort that goes into cash flows management while also keeping a lid on risk. In a world dominated by manual calculations and spreadsheets, this grail has remained out of reach.

Today, however, advances in data-driven workflows and automated systems have finally made it possible for banks to reduce complexity and risk within their TRS workflows. Wematch is proud to be at the vanguard of this wave of innovation. Our TRS Cash Flow Management module automates trade capture and reconciliation and provides an independent space in which financial institutions can calculate cash flow. 

By automating cash flow management workflow we can help financial institutions eliminate errors even as they reduce the resources needed to carry out TRS cash flow tasks. As well as eliminating the risks that stem from inaccurate reconciliations, we bring greater transparency to the corporate action booking process, further aligning books and records and preventing breaks at source.

Advances in automation mean that cash flows can be reconciled in minutes rather than days, and financial institutions can redirect their attention to front-office, value-generating tasks. TRS is by nature a complex market, but there’s now no reason why associated cash flow processes shouldn’t be simple and seamless. 

To learn more, reach out.

Pic Credit: Matthew Henry from Burst

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