Wematch.live: Insights on Growth,
Expansion, and its new borrowing
and lending (SBL) use-case

Insights from Joseph Seroussi, Chief Executive and Co-Founder of Wematch.live and Ed Hochstadter Jr., the Head of Securities-Based Lending Sales and Coverage or North America, as they share their views on the firm’s growth and expansion, revealing they will soon introduce a new SBL use-case. 

This article is part of the 2023 Americas Securities Finance Guide, which can be accessed here.  

Can you provide more information about Wematch’s growth in the North American market? 

Wematch has been experiencing significant growth in the North American market, and we are excited to share more about our expansion. Over the years, our customers have expressed their expectations for us to extend the benefits of Wematch workflows to other regions. We have been working towards this goal, and our New York team is now becoming a well-established unit rather than simply operating out of London and other locations.

In New York, we have built dedicated teams for product, tech, and support functions. This expansion is an ongoing process, and we expect all the different verticals of our firm to be fully present by the end of the year. This evolution signifies our transformation from a subsidiary or branch office to a fully-fledged business entity in North America. We have invested substantial resources to ensure our customers have the complete “Wematch experience.”

This experience entails having professionals who understand the market, actively listen to client’s needs, have first hand experience in the client’s seat, and can translate those requirements into product specifications. Wematch then delivers these demands through production environments, allowing clients to benefit from our offerings.

Our primary aim is to assist clients in their day-to-day operations, and we are committed to delivering on the promise we have made to them as we solidify our presence in the North American market.

How is Wematch’s team expanding, and are there plans to enter other markets?

The expansion of our team at Wematch is a carefully considered process. While we have observed some banks downsising their workforce recently, the securities financing sector has performed well overall. Customers are satisfied with the industry’s results across various banks, and they contribute significant value to their employers.

Currently, our hiring focus is primarily on technology and product roles since we are a technology company at the core. Our top priority is to provide the best possible product, and most of our investments are directed toward achieving this goal. The industry’s growth will revolve around streamlining and automating low value- added tasks, as neglecting these tasks can result in substantial costs. Therefore, we mainly focus on addressing workflow pain points and expanding further into post-trade operations with cash flow management solutions.

Additionally, we are developing risk management tools, building contribution products, and addressing legal aspects to facilitate the industry’s shift towards more standardised electronic term sheets. We aim to support our customers comprehensively across all aspects of their business, not just matching, by concentrating on workflows and addressing post-trade, legal, and financial dimensions.

Wematch strives to become the go-to “one-stop shop” or software ecosystem for the TRS (Total Return Swap) community globally while also bringing the benefits of our working model to stock loan services. We recognise the need for innovation in the stock loan sector and aim to replicate the positive experiences our users have had with TRS. We are working rapidly to build and deliver these solutions to meet the demands and requirements of our customers. Exciting times lie ahead as we continue to progress in these endeavours.

Global Investor has mentioned that Wematch will soon introduce a new SBL (Securities Borrowing and Lending) use case. Could you provide more details about it?

Indeed, Wematch expanded into the European market in 2021, focusing on securities lending, particularly hard-to-borrow securities. We have recentlybroadened our product scope in Europe to include credit lending solutions, which have garnered considerable interest from industry participants. Building upon these developments, we plan to launch the hardto- borrow in the US. Our goal is to have the entire setup ready and operational by the end of the year, with users actively utilising the platform.

Currently, we are engaging with a select group of counterparties who are testing the product in UAT (User Acceptance Testing) mode. We strive to listen to their feedback and incorporate essential workflow components that will drive future liquidity in the market.

At Wematch, we firmly believe that workflow plays a pivotal role in generating liquidity. Traders face numerous challenges and responsibilities, even in an increasingly electronic market.Thus, Wematch aims to automate processes and provide traders with the necessary support to scale their businesses effectively. We are thrilled about the prospects of our growing community and the opportunity to develop new products that address their evolving needs and aspirations.

Considering the future market volatility in the Securities Lending market, what steps is Wematch taking to cater to this challenge?

Over the past 12 months, Wematch has been working closely with our customers, particularly during challenging market conditions. We are proud to report a closeto- zero churn rate, indicating that we have served our customers exceptionally well.

Our trading volumes have reached all-time highs, and our technology has consistently proven its ability to deliver in demanding market conditions. Looking ahead, we envision a future driven by increased automation and service enhancements throughout the trade lifecycle and workflow events.

By positioning ourselves at the centre of our client’s day-to-day activities, we can offer even greater support. The more our customers use Wematch, the more they discover its value, as they share their pain points and help us refine and develop the platform further.

Our collaborative model ensures that solutions or functionalities we develop for one client are made available to everyone, fostering an environment of shared innovation. This approach allows us to adapt swiftly to regulatory changes, such as T+1 settlement and market conditions characterised by varying levels of volatility.

Additionally, we are actively working on a blockchain settlement solution, which will introduce future technology to the industry. By supporting our growing community and adapting to market conditions, we aim to drive the future of the Securities Lending market.