Securities financing solutions provider Wematch.live has launched its Data & Contribution Service to tackle data challenges in the over-the-counter (OTC) derivatives market.
The service is designed to enhance price transparency and standardisation, as well as allow institutions to collaboratively contribute data to create a pool of total return swap (TRS) pricing information.
According to the firm, the new 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, the firm adds. Wematch will then process this data to generate insights for participants including historical pricing midpoints, liquidity metrics, trading analytics and benchmarks.
The Data & Contribution Service aims to enhance risk management and compliance, reduce valuation uncertainty and promote greater standardisation in this “traditionally opaque” market.
After its initial launch in EMEA, the firm plans to expand the service’s reach to the US and Asia in Q1 2024.
Wematch will also look to expand the data contribution model to other OTC products to help solve pricing and regulatory challenges across the industry.
Commenting on the announcement, Laurent Benzaquine, co-founder, securities financing coverage at Wematch, says: “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 & Contribution Service uniquely brings together Wematch’s technology, network effect and TRS expertise to solve this pressing data problem for the industry.”
