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The Evolution of Securities Lending: How SM@RT Matching is Enhancing Efficiency

Securities lending has historically been plagued by inefficiencies, where manual processes and complex regulations create obstacles in matching lenders with borrowers. Addressing these challenges, we introduced SM@RT Matching, the solution that promises to enhance the future of securities lending by streamlining operations and improving accuracy.

Advanced Matching Algorithms

SM@RT Matching employs sophisticated algorithms to tailor matches based on specific criteria set by both lenders and borrowers. This includes considerations such as RWA weighting linked to tax ID, collateral schedules, currencies, borrower ranking, and lender ranking. By allowing institutions to define proprietary rules and constraints, SM@RT Matching ensures precise and efficient trade combinations.

Real-Time Data Integration

Our platform’s ability to connect directly with lenders and borrowers allows it to receive real-time information on availabilities and borrowing needs. This immediate access to current data significantly reduces the time required to identify and execute optimal trades, enhancing market responsiveness and efficiency.

Seamless Post-Trade Integration

We integrate effortlessly with main post-trade vendors, enabling auto-booking or the receipt of tailored booking templates. This integration streamlines the entire post-trade process, minimising manual interventions and reducing associated risks.

Benefits for Lenders

  • Optimised Asset Utilisation: By using tailored matching criteria, lenders can ensure their inventory is utilised most profitably, maximising returns on their assets.
  • Reduced Operational Risk: The automation of trade matching and booking minimises the potential for human error, thereby decreasing operational risk.

And for Borrowers

  • Enhanced Access to Inventory: Borrowers benefit from improved access to a broad range of securities, thanks to the platform’s comprehensive connectivity and smart matching capabilities.
  • Cost Efficiency: By receiving the best possible match based on predefined criteria, borrowers can optimise their borrowing costs and secure the most favourable terms available.

 

We are transforming the securities lending landscape by enhancing efficiency, reducing risks, and optimising returns for both lenders and borrowers. As the industry continues to evolve, features like SM@RT Matching will be crucial in maintaining competitiveness and driving success.

For more information on how Wematch can optimise your securities lending operations, Contact us 

Photo by Raphaël Biscaldi 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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