Wematch held its 2nd APAC TRS Forum in Singapore, bringing together 22 securities finance professionals from 15 major banks for discussions on trends, products and initiatives in the total return swaps (TRS) market.
Participants learned that January saw an all-time high in posted TRS interests on Wematch’s Platform, averaging around $110 billion in daily liquidity. February also witnessed record traded notional volumes of $37 billion across EMEA and the US. The ongoing TRS notional balance exceeded $300 billion for the first time in February 2024.
Wematch’s new Data & Contribution service was a major focus, designed to enhance transparency around the opaque OTC TRS market. By facilitating frequent pricing contributions from dealers, this offering aims to provide much-needed real price observations to help banks comply with incoming FRTB regulations.
Speaking to Finadium News & Opinion on the sidelines of the PASLA conference in Singapore, David Raccat, Wematch co-founder and CEO, said that the service will extend to Asia-Pacific on April 1, with US expansion planned in the second quarter.
The team also spotlighted its Cash Flow Management tool, which automates the highly manual cash flow reconciliation process across all TRS trades, providing detailed breakdowns to quickly identify and resolve any discrepancies between counterparties. Early clients are already seeing substantial efficiency gains.
Another key announcement was Wematch’s collaboration with ISDA and ISLA to create standard ISDA term sheets and enable digital confirmations for TRS trades starting in 2024. This initiative will streamline legal processes, reduce operational risk and drive significant cost savings.