The working day of a Total Return Swap (TRS) trader is often something of an endurance test. Sitting at the centre of a highly complex financial product, these traders must juggle a wide range of tasks and manage relationships with multiple counterparts, each demanding different communication methods and protocols. From asset managers to brokers, each interaction requires expert navigation of multiple workflows and protocols.

What’s more, despite recent technological advancements, a substantial portion of trading processes remains anchored in manual routines. This manual dependence not only takes up a disproportionate amount of the trader’s time, often in repetitive tasks but also amplifies the potential for errors. Whether it’s inputting data, reconciling figures, or confirming trade details, the manual nature of these tasks can lead to discrepancies, missed opportunities, and at times financial losses. This constant tension between the need for accuracy and the limitations of manual processes makes the TRS trader’s role highly demanding.

One way to solve this challenge is to leverage new digital approaches that create a TRS “ecosystem.” In this model, firms bring all their TRS functions together in one place, inclusive of trading and lifecycle management, thereby reducing complexity and increasing operational efficiency. The trader is at the heart of this ecosystem and connected to their counterparties with the latest, highly automated workflows.

The Wematch TRS module enables just such an ecosystem. Our platform offers users access to a community where traders can connect with counterparties through enhanced communication protocols, manage their books effectively, and unlock the benefits of data-driven processes and insights. It is in essence a trade management ecosystem that supports every element of TRS trading in one place – from automated interests matching capable of navigating bespoke collateral schedules and conditions to full lifecycle management with integrated tools for any type of event to seamless workflow between sales teams and TRS dealers.

Elsewhere in the financial sector, digital technologies are leveraging smart algorithms and automated processes to drive efficiencies and reduce risk. It’s time for TRS traders to benefit from the same with a digital ecosystem approach to their work. 

To learn more, reach out.

Pic Credit: Ivan Bandura 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.