FinTechJ.P. Morgan and Societe Generale invest in voice trading tech

J.P. Morgan and Societe Generale invest in voice trading tech

Wematch announces new investment from J.P. Morgan and Societe Generale as the company plans to transform traditionally voice-traded financial markets.

J.P. Morgan and Societe Generale have invested in Wematch, a technology provider which augments how traders at banks match, negotiate and manage trades and brings the audit and control benefits of electronic tools to voice trading. The funding takes J.P. Morgan’s and Societe Generale’s relationship with Wematch from users to investors, with the banks already active on Wematch across all existing platforms.

This investment in Wematch is crucial since the company is making headway in its plans to transform traditionally voice-traded financial markets.

Joseph Seroussi, co-CEO of Wematch, said: “Wematch is leveraging on the latest available technologies and the traders’ community permanent feedbacks and inputs to develop its capital market solutions. Our objective is to have a significant impact on the bottom line expenses of financial institutions by rolling out the Wematch technology on all markets, internal, or dealer-to-client activities.”

Gregory Mimoun, co-CEO of Wematch, said: “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.”

Enormous potential to help the capital market industry

Even with the growth and benefits of e-trading, in some markets institutional investors still conduct most of their trading over the phone, or through interdealer brokers. Wematch delivers the benefits of the newest web technologies to traders at banks, improving the matching and negotiation process, cutting costs for banks and increasing efficiency and reducing conduct risk for traders.

There is enormous potential for Wematch to help the capital market industry in further adopting digital solutions across multiple markets globally, and to adapt this awarded technology to internal and client-facing solutions.

Despite pressure from regulators for more trades to be conducted on electronic trading venues, it is estimated that over 80% of structured products and FX derivatives are still transacted by voice.

The interest rate swaps market is worth USD 2.1 trillion a day, according to the Bank for International Settlements, with over 70% of that business handled by phone negotiation.

The fintech technology provider as of today has 40 banks and more than 750 traders on its cross assets with more onboarding and billions of dollars in deal flows matched using its technology.

The company launched its interest rates offering in June, with 10 banks matching and negotiating Euro IRS curves, butterflies, basis and gadgets structures, with single stock & Index options to follow in the coming months.

This was built on its existing services for securities lending and equity derivatives and the firm now plans to build out services to more asset classes and instruments.

Fostering the expansion

Wematch came through J.P. Morgan’s In-Residence Programme and Societe Generale’s Global Markets Incubator to foster the expansion of the fintech’s offer across asset classes and instruments.

Pasquale Cataldi, Head of Markets Lab,  J.P. Morgan, commented: “J.P. Morgan was an early supporter of WeMatch. 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.”

Albert Loo, Deputy Head of Sales for Global Markets at Societe Generale, added: “Societe Generale is excited to contribute to the Wematch development after a successful collaboration within our Global Markets Incubator. Innovation in trading technology will drive efficiencies for market participants and we strongly believe that Wematch can sustainably improve dealing processes across asset classes.”

Four months ago, Kyriba became the first treasury management provider to offer real-time payments through J.P. Morgan. Nine new countries in Western Europe and Asia got payment standard, enabling corporate clients to track and manage cross-border payments more efficiently as Societe Generale extended SWIFT GPI coverage at the start of 2019.

Related Articles

ING – bank or fintech?

Banking ING – bank or fintech?

1m Austin Clark
Why getting the right technology mix isn’t your biggest challenge

FinTech Why getting the right technology mix isn’t your biggest challenge

3m Anish Kapoor
AI: evolution rather than revolution

Cyber Security & Fraud AI: evolution rather than revolution

3m Martin Morris
Deutsche Bank opens innovation hub in China

Banking Deutsche Bank opens innovation hub in China

5m Jay Ashar
Banking industry's approach to technology shifting

Automation Banking industry's approach to technology shifting

6m Jay Ashar
EBA responds to issues raised by EBA API Working Group

Banking EBA responds to issues raised by EBA API Working Group

6m Jay Ashar
HSBC rolls out digital accounts receivable tool

Automation HSBC rolls out digital accounts receivable tool

8m Jay Ashar
Citi TTS launches Fintech Challenge for Middle East and North Africa

FinTech Citi TTS launches Fintech Challenge for Middle East and North Africa

8m Jay Ashar

Whitepapers & Resources

Transaction Banking Survey 2019

Transaction Banking Survey 2019

5m
TIS Sanction Screening Survey Report

Payments TIS Sanction Screening Survey Report

7m
Enhancing your strategic position: Digitalization in Treasury

Payments Enhancing your strategic position: Digitalization in Treasury

9m
Netting: An Immersive Guide to Global Reconciliation

Netting: An Immersive Guide to Global Reconciliation

1y