JPMorgan has welcomed securities financing startup Wematch to its In-Residence fintech programme where it will work side-by-side with the bank over a six-month period to explore ways of applying its technology at scale.
Founded by a former BNP Paribas and JPMorgan executive, the machine learning programme acts as a digital broker, operating a subscription-based matching and negotiating engine for the dealer-to-dealer interest rate market.
Pasquale Cataldi, head of fixed income execution services at JPMorgan, says: “It is exciting to see a small group of market experts have the chance to build a product that can significantly impact the bottom line of large banks while creating a platform that can reduce operational and conduct risks.”
Scoring an In--Residence partnership with the bulge bracket bank is something of a coup for Wematch. Mosaic Smart Data, the first graduate from the startup programme, signed a multi-year contract with the firm late last year to deploy its data platform across the bank's rates desks globally.
Mikhael Farouz, market expert for interest rates and foreign exchange at Wematch.live, says: “We are developing new matching and negotiation engines with JPMorgan’s product teams. This technology will be tailored to trading interest rate instruments while improving market efficiency and reducing execution costs for all dealers.”