A start-up that provides matching and negotiation systems to banks has attracted investment from JP Morgan and Societe Generale, as it seeks to transform markets that are traditionally voice-traded.
Wematch provides a dealer-to-dealer platform to clients through web technologies in a bid to improve the matching and negotiation trading process. It aims to bring the audit and control benefits of electronic trading to voice-traded markets via a web-based software-as-a-service.
“Wematch is delivering the next generation in trading protocols, with intuitive GUIs and workflow tools to give voice trading professionals the edge. Everything we build is designed to support the trader’s decision, giving them the tools to make the right call with confidence and certainty,” said Gregory Mimoun, co-CEO of Wematch.
The company also pointed to substantial potential to help the industry further adopt digital solutions across global markets, as regulatory developments force trades to be conducted on electronic trading venues. More than 80% of structured products and FX derivatives are still transacted by voice, and 70% of the interest rate swaps market is also still negotiated over the phone.
Last year the firm was enrolled in JP Morgan’s in-residence FinTech programme and it was also part of the Societe Generale global markets incubator. Both investment banks are now active on all of Wematch’s platforms.
“JP Morgan was an early supporter of WeMatch,” Pasquale Cataldi, head of markets lab at JP Morgan, commented. “As a member of our InResidence Programme, the platform showed real potential to transform the interbank interest rate dealing market through automation, resulting in audit and control benefits. The level of market adoption has already been encouraging and we’re delighted to continue the journey with them.”
More than 40 banks and 750 traders currently cross assets on Wematch using its technology and platform. JP Morgan, Societe Generale, as well as other major institutions such as HSBC and RBC, went live with Wematch when it expanded its dealer-to-dealer platform to include euro interest rate swaps in July.
“Societe Generale is excited to contribute to the Wematch development after a successful collaboration within our Global Markets Incubator,” Albert Loo, deputy head of sales for global markets at Societe Generale, added. “Innovation in trading technology will drive efficiencies for market participants and we strongly believe that Wematch can sustainably improve dealing processes across asset classes.”