Wematch.live, a leading fintech provider of securities financing solutions, today announced the launch of its Data and Contribution Service to enhance price transparency and standardisation in the over-the-counter (OTC) derivatives market. The new service allows institutions to collaboratively contribute data to create a robust pool of Total Return Swap (TRS) pricing information.
“There is an urgent need for reliable OTC data to meet expanding regulatory requirements and to enable firms to more accurately manage risk. Our Data and Contribution Service uniquely brings together Wematch’s technology, network effect and TRS expertise to solve this pressing data problem for the industry,” said Laurent Benzaquine, Co-Founder, Securities Financing Coverage at Wematch.
The Service facilitates regular online sessions where Prime Finance desks can submit prices on standardised structures. Quotes are made observable and tradable within the community during sessions. Wematch then processes this data to generate actionable insights for participants including historical pricing midpoints, liquidity metrics, trading analytics and benchmarks.
By providing transparent access to TRS price data, the Service aims to enhance risk management and compliance, reduce valuation uncertainty, and promote greater standardisation in this traditionally opaque market. Initial adoption has been strong with 14 contributing banks and over 5,500 prices collected during the EMEA launch. Expansion to the US and Asia is planned for Q1 2024.
In addition, based on feedback, Wematch is exploring expanding the data contribution model to other OTC products to help solve pricing and regulatory challenges across the industry. The robust framework and technology underlying the service provide flexibility to address data needs in additional opaque markets going forward.
“The Data and Contribution Service is an innovative use of technology and collaboration to solve an industry pain point that has plagued institutions for years – the lack of robust data in OTC markets. We are excited to see the traction so far and look forward to working with our community to drive further adoption,” added Benzaquine.
For more information and to request access, visit the Data and Contributions Service page.
