Trade lifecycle management in securities financing has long been a labyrinth of complexity. With multiple moving parts and stakeholders, it’s a process that’s been ripe for inefficiencies and errors. However, new technologies are emerging to change this narrative.

The Trade Lifecycle Challenge

SBL (Securities Borrowing and Lending) transactions involve numerous steps from execution to closure. Traditionally, managing these processes has relied heavily on manual inputs and disconnected systems, leading to increased operational risks and time-consuming reconciliations.

A Comprehensive Solution

Evolved solutions are taking a holistic approach to trade lifecycle management. They’re designed to serve various users – from front and middle office to lenders and borrowers – by digitising and automating key processes.

How to Streamline Operations

• Advanced Collateral Management: New systems handle complex collateral rules efficiently, managing reshuffles while ensuring compliance with agreed terms.
• Integrated Sizing Adjustments: Users can manage upsizes and downsizes simultaneously with collateral reshuffles, streamlining what was once a cumbersome process.
• Granular Deal Tracking: With Deal ID management for each underlying security line, modern platforms enhance tracking and reporting capabilities.
• Bulk Trade Handling: Perhaps the most time-saving feature, new solutions allow for bulk management of multiple trades and send notifications to all counterparties in one click.

Beyond Individual Processes: A Unified Approach

While each feature offers significant benefits, the true strength of these new solutions lies in their integrated approach. By offering a comprehensive view of trades and collateral, they enable quicker, more informed decision-making.

Connectivity with trading systems via STP/API further enhances utility, allowing for real-time updates and reducing manual interventions. This, combined with the network effect of onboarded counterparts, creates a powerful ecosystem for managing trade lifecycles.

Mitigating Operational Risks

By automating processes and providing clear visibility into trade status and collateral positions, these advanced platforms significantly reduce the potential for costly errors and regulatory issues.

Looking Ahead

Innovative tools for trade lifecycle management will become increasingly crucial. By simplifying complex processes and enhancing visibility, they allow financial institutions to focus on strategy rather than getting bogged down in operational details.

Our Solution

The solution making waves in the industry is our FRM Optimiser module. Our platform embodies all the features discussed, offering a path to enhanced efficiency, reduced risk, and improved performance across the board. While collateral optimisation is a key feature, the true value of Wematch’s FRM Optimiser lies in its holistic approach to trade lifecycle management.

To learn more about Wematch.live, please reach out.

Photo by Joanna Kosinska on Unsplash

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