London, 5th June 2023–Wematch, the digitised dealing workflow platform for traders, sales, and brokers, today announces the launch of two new modules to its Security Financing proposition. The Financial Resource Management (FRM) Optimiser simplifies, systemises, and optimises the recall and substitution process of the principal composition basket and bilateral collateral basket on securities-based lending (SBL) financing trades. Meanwhile, the Total Return Swaps (TRS) Cash Flow Management module digitises and automates cash flow processes. Combined, the two modules bring greater efficiency to Securities Financing trade desks and reduce operational risk. 

Brendon Johns, Product Manager at Wematch comments: “Our mission at Wematch is to refine and replace outdated manual processes with faster and more accurate alternatives. Financial institutions already leverage Wematch.live to automate workflows and optimise collateral in their TRS books: we have leveraged our experience as a leader in the TRS market to bring applicable and transferable aspects of our toolset to the SBL Financing market, a historically disjointed and underserved market place. Our new modules extend the reach of our services, allow for portfolio optimisation across products and markets, and will free up more time for financial institutions to focus on value-adding tasks.”

The Wematch FRM Optimiser creates a central marketplace for lenders and borrowers, enhances trade capture to ensure term sheets are well-defined and adhered to, and provides complete lifecycle management tools. It also includes a user-rule-driven tool to better manage recalls and substitutions and ensure optimal inventory allocation across bilateral principal and collateral baskets.

The FRM Optimiser unlocks a range of benefits for firms. These include driving efficiencies by automatically comparing recall and inventory lists with names in ongoing principal baskets, widening the scope of trade portfolio optimisation by factoring in bilateral collateral baskets placed with counterparties, and enabling users to instruct recalls and send an efficient substitution simultaneously, at the click of a button.

Wematch Cash Flow Management, meanwhile, leverages the trade record built up from processing  TRS Lifecycle events in the platform. This is then enriched with market data and corporate actions data, to accurately and independently calculate cashflows. Wematch offers a variety of solutions to improve the synchronisation of books and records. Synchronising the trade booking and swap preferences between parties eliminates the root cause of many cashflow breaks. As a result, any errors can be identified and resolved much more efficiently with significantly reduced operational risk.  

Firms using Wematch Cash Flow Management are able to reduce their overall risk as Wematch increases transparency of reconciliation processes and operates as an independent intermediary. The module also drives efficiency and operational cost benefits through automation.

Ben Cullen, Product Manager at Wematch concludes: “These latest additions to the Wematch portfolio underscore our commitment to working with end-user organisations to develop tools that meet their most important needs. Both modules have been developed in close collaboration with our customers, and this is reflected in the scope of the functionality and the powerful outcomes they enable. We look forward to collaborating ever more closely with our clients to ensure our platform remains laser-focused on their business and operational requirements.”