This week, we held our first TRS Forum in New York, bringing together nearly 50 securities finance professionals to discuss the latest trends and developments in the TRS market. This inaugural New York event joins Wematch’s established series of TRS Forums held regularly in London, Paris and Hong Kong.

Key themes that sparked lively debate among attendees included the rapid growth of TRS, with Wematch’s platform reaching record highs of $215 billion in ongoing notional. Participants are seeing trading volumes rise, driven by new regulations like Uncleared Margin Rules and Basel IV, as well as rising interest rates. Preparations for central clearing of equity swaps are also accelerating, though uncertainty remains around the exact timelines and scope of products in scope.

Views were shared on the promise and challenges around agency TRS structures, which can expand liquidity but also introduce new risks around transparency and credit exposures. Additionally, the current manual processes for managing confirmations and paperwork pose operational risks and costs. Wematch highlighted an in-development digital ISDA confirmation project that aims to significantly streamline post-trade processes. This will complete the current success around the new module dedicated to cash flow management and reconciliation.

Finally, our new weekly TRS data contribution initiative aims to bring greater pricing transparency and standardize curve construction, filling a notable gap in benchmarks and data availability in the TRS market. 

With TRS volumes growing and regulations evolving, the inaugural New York event highlighted thought-provoking insights into this market. Our goal is to make the Forum a regular New York gathering for the industry. To receive future Forum invites, reach out. 

Picture Credit: Photo by Brodie from Burst

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