J.P. Morgan and Societe Generale have invested in Wematch, as it advances plans to transform traditionally voice-traded financial markets.
The FinTech firm provides technology which augments how traders at banks match, negotiate and manage trades.
Despite 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 claims to improve the matching and negotiation process, cutting costs for banks and increasing efficiency and reducing conduct risk for traders. There are now 40 banks and more than 750 traders using the technology.
The startup came through J.P. Morgan’s In-Residence Programme and Societe Generale’s Global Markets Incubator. The latest funding moves the them from users to investors, with the banks already active on Wematch across all existing platforms.
Joseph Seroussi, co-chief executive of Wematch, said: “Wematch is leveraging on the latest available technologies and the trader community’s permanent feedback and inputs to develop its capital market solutions.”
Albert Loo, deputy head of sales for global markets at Societe Generale, said: “Innovation in trading technology will drive efficiencies for market participants and we strongly believe that Wematch can sustainably improve dealing processes across asset classes.”
Wematch launched its interest rates offering in June, with 10 banks matching and negotiating Euro IRS curves, butterflies, basis and gadgets structures, with single stock and index options to follow in the coming months.
This was built on existing Wematch services for securities lending and equity derivatives, and the firm now plans to build out services to more asset classes and instruments.
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