Wematch.live and Eurex announced a partnership in the synthetic securities finance industry for basket Total Return Futures (BTRFs), which will have a phased roll-out over the coming months and full integration across pricing, execution and lifecycle management targeted for a Q3 2024 launch.
The ultimate aim is for interoperability between Wematch’s TRS module, which automates trade matching and collateral optimization, with Eurex’s 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 “futurization” of synthetic equity financing provides portfolio margining efficiencies and streamlined operations.
Wematch’s TRS solution digitizes dealing workflows, providing core functions like automated matching, integrated lifecycle management tools, granular collateral optimization rules, streamlined sales-to-trader handoffs, and enhanced synthetic ETF workflows, reducing operational risks through error reduction while increasing productivity.
Interoperability between the two platforms will be across 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 clearing and settlement, which can be expected to “unlock new levels of efficiency and capital optimization” according to a company statement.
“Partnering with Eurex creates immense opportunities to optimize an increasingly critical area of the securities finance ecosystem,” said David Raccat, CRO & co-founder at Wematch, in a statement. “Synthetic products are vital for efficient capital deployment and portfolio utilization, and bTRFs represent a paradigm-shifting innovation layering exchange benefits onto this model. Our transformative partnership will empower market participants to seamlessly access and capitalize 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, in a statement. “By harmonizing our respective strengths in synthetic product innovation and TRS lifecycle management expertise, we can radically enhance and optimize the entire value chain for BTRF users worldwide.”