Wematch.live, the leading platform for optimising collateral and managing the full lifecycle of Total Return Swaps (TRS), and Eurex, the leading European derivatives exchange, today announced a transformative partnership to collaboratively drive innovation in the synthetic securities finance industry through Basket Total Return Futures (BTRFs).
The groundbreaking partnership will allow interoperability between Wematch’s state-of-the-art TRS module, which automates trade matching and collateral optimisation, with Eurex’s pioneering BTRF products. Eurex’s Equity and Basket Total Return Futures enables the trading of bespoke baskets of equities in a centrally cleared, exchange-traded format. This pioneering “futurisation” of synthetic equity financing provides portfolio margining efficiencies and streamlined operations.
Wematch’s TRS solution digitises dealing workflows, providing core functions like automated matching, integrated lifecycle management tools, granular collateral optimisation rules, streamlined sales-to-trader handoffs, and enhanced synthetic ETF workflows. This reduces operational risks through error reduction while dramatically increasing productivity.
By offering interoperability between their cutting-edge platforms, Wematch and Eurex aim to revolutionise the complete end-to-end workflow for BTRF market participants – from basket construction and pricing to trade execution, lifecycle events like amendments and substitutions, and ultimately streamlined clearing and settlement. This seamless harmonisation will unlock new levels of efficiency and capital optimisation.
“Partnering with Eurex creates immense opportunities to optimise an increasingly critical area of the securities finance ecosystem,” said David Raccat, CRO & Co-founder at Wematch. “Synthetic products are vital for efficient capital deployment and portfolio utilisation, and BTRFs represent a paradigm-shifting innovation layering exchange benefits onto this model. Our transformative partnership will empower market participants to seamlessly access and capitalise on these pioneering instruments and leverage our cutting-edge workflow tools on Total Return Swaps.”
“Collaboration with leading industry innovators like Wematch is essential for Eurex to continue evolving our pioneering BTRF product suite to meet increasing global demand,” said Randolf Roth, Member of the Executive Board at Eurex. “By harmonising our respective strengths in synthetic product innovation and TRS lifecycle management expertise, we can radically enhance and optimise the entire value chain for BTRF users worldwide.”
The landmark partnership will roll out in strategic phases over the coming months, with the full integration across pricing, execution and lifecycle management targeted for a Q3 2024 launch.
