The marketplace for liquidity solutions is rapidly changing as modern, evolved platforms emerge. Traditionally, the space has been dominated by a few large legacy vendors. However, their concentration of market liquidity and third-party risks is now leading many institutions to explore alternative options.

As David Raccat, CRO & Co-founder of Wematch, stated in a recent interview (gated) with Risk.net, there is an accelerating debate happening about having multiple liquidity solutions rather than relying on just one or two players. The executives David speaks with are concerned about concentration risk, yet feel locked into working with the big incumbents. 

The problem is often related to legacy systems using outdated technology that lacks flexibility. This makes it hard for firms to tailor solutions to their needs. There is a growing demand for platforms that provide more control and customisation around delivery methods, counterparty limits, and risk management.

Enter evolved solutions like Wematch, which has established itself as a modern, flexible platform in the space. Our platform gives clients more say in how their liquidity is sourced and distributed. By leveraging an advanced tech stack and open architecture, we mitigate third-party risks. This also opens the door to unique liquidity avenues that were previously unavailable.

The choice is no longer binary – work with concentrated market makers or go alone. There are now innovative alternatives that combine the best of both worlds. Institutions gain technology-driven access to differentiated liquidity while still outsourcing operational needs. 

As David hinted in his Risk.net interview, these modern platforms will continue disrupting the space by meeting demands for flexibility and risk reduction that legacy vendors struggle with. The market is headed towards more modular liquidity solutions.

To learn more about elevating your collateral management capabilities, reach out to explore the latest generation of advanced solutions.

Photo by Hayden Walker on Unsplash

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