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SM@RT Matching: A New Chapter in Securities Lending Efficiency

The securities lending landscape has long grappled with inefficiencies, where manual processes and complex regulations create bottlenecks in matching lenders with borrowers. Recognising these challenges, we’ve developed SM@RT Matching, an innovative solution that promises to reshape the future of securities lending.

Our system represents a significant leap forward in the concept of ‘smart matching’. At its core, this technology automates and optimises the matching process by simultaneously considering a multitude of factors. From risk-weighted asset (RWA) weightings linked to Tax IDs, to collateral schedules, currency preferences, and counterparty rankings, it takes into account a wide array of variables to provide highly tailored and efficient matches.

One of the key innovations is the use of real-time data. By establishing direct connectivity with both lenders and borrowers, the system receives up-to-the-minute information on availabilities and borrowing needs. This real-time data flow enables swift, informed decision-making, leading to more efficient matching and improved liquidity discovery.

The practical implications are substantial. For lenders, it leads to better utilisation of their inventory and improved returns. Borrowers find it easier to locate and secure specific securities when they need them. Both parties benefit from reduced operational overhead and optimised risk profiles.

As more participants adopt this technology, we anticipate a network effect that will further enhance its capabilities. The growing pool of diverse securities and requirements allows the system to demonstrate its full potential, creating a more dynamic and liquid securities lending market.

SM@RT Matching is designed to bring significant improvements to the securities lending process. The system aims to enhance efficiency, optimize inventory utilization, and provide easier access to required securities. As the technology is implemented and adopted across the industry, we believe it will demonstrate its transformative potential in streamlining securities lending operations.

This innovation marks a new era in securities lending. By leveraging advanced algorithms, real-time data, and a deep understanding of market needs, we’re not just streamlining existing processes – we’re reimagining how securities lending can work in the digital age.

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

Photo by Yogendra Singh 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.

 

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