TRS are essential instruments for financing and synthetic trading. However, operational complexity has hindered innovation in TRS markets. Fragmented data, manual processes and bilateral silos limit scalability and transparency.

Now, modern evolved solutions are poised to transform the management of TRS, applying automation, analytics and community collaboration to unlock greater efficiency. This article explores how data centralisation, digitalisation and collective insights will shape the future of total return swaps.

Optimising TRS Operations with Intelligent Automation

Newer evolved platforms provide an integrated suite of TRS capabilities that streamline operations from end to end:

• Trade Sync that digitally imports TRS deal specifics into a centralised repository
• Lifecycle Management that automates key events like rate resets and early terminations
• Sophisticated Optimisers that handle collateral margining through configurable rules
• Cash Flow Reconciliation that offer independent calculation for efficient break resolution

By eliminating fragmented processes and manual interventions, these tools minimise operational friction. Intelligent automation replaces spreadsheets while straight-through processing further boosts productivity.  

Unlocking Insights Through Consolidated TRS Analytics

These solutions aggregate disparate data points across TRS portfolios into unified dashboards, empowering in-depth analysis:  

• Holistic viewing of both current and historical financing trades
• Enriched performance metrics across risk, exposure, collateral and more
• Dynamic benchmarking of spreads, fees and other transaction trends 
• Seamless integration with traders’ own internal datasets and models

Centralised analytics allow monitoring of real-time activity while surfacing strategic insights. Portfolio managers gain unparalleled visibility and control over valuations, exposures and opportunities.

Fostering Community-Driven Standards and Improvements

In particular, at Wematch we facilitate collaboration to promote TRS market evolution:

• Regular TRS Forums across the globe for practitioners to discuss developments and share expertise: the latest took place in Singapore this week
• Rapidly expanding community with 90 institutions actively participating
• Joint initiatives around contract standardisation, conventions and best practices

By crowdsourcing collective intelligence, we amplify network effects. This constant cross-pollination propels greater liquidity, transparency and innovation for all participants.

TRS trading stands to benefit immensely from digital transformation through data consolidation, intelligent automation and collaborative community approaches. Solutions like Wematch’s integrated platform bring these key enablers together. As outdated, fragmented processes are eliminated, we will see new levels of efficiency, more robust risk management and accelerated strategic progress. Reach out to explore how evolved platforms can optimise your TRS program.

Photo by Victor on Unsplash

The views and opinions expressed are for informational and educational purposes only as of the time of the writing/production and may change at any time. The material may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections, forecasts, estimates of market returns, and proposed or expected portfolio composition. All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.