“For the FCM community, that means making sure there’s no money left on the table. Our FCM clients already use the Baton platform to move tens of billions of dollars in collateral every week.
Baton Systems has announced connectivity to Options Clearing Corporation (OCC) through the Baton Core-CollateralTM ecosystem, the company announced.
DLT-powered post-trade processing platform extends connectivity to enable clearing houses to automate collateral management across 11 major CCPs globally, together representing over 93% of margin, placed by FCMs registered in the United States.
With rising interest rates, FCMs are under increasing pressure to maximize their use of non-cash collateral and Baton’s Core-Collateral solution enables clearing members to automate and optimize their processes collateral management by providing intraday visibility of current margin obligations and collateral holdings at the CCP. It helps
By helping FCMs improve both the financial and operational efficiency of their collateral movements for centrally cleared derivatives, they are able to minimize what could otherwise turn out to be a massive operational burden, with risks important associates.
FCM customers can automate and optimize warranties under management
Tucker Dona, Head of Business Development and Customer Success at Baton Systems, said, “The need to reduce costs associated with funding and liquidity is becoming increasingly important. For the FCM community, that means making sure no money is left on the table. Our FCM clients already use the Baton platform to move tens of billions of dollars in collateral every week. With an additional CCP, they now have the ability to automate and optimize an even greater proportion of their collateral under management. We are excited about the transformative opportunities and benefits this presents for our customers. »
Baton has facilitated the settlement of over $7.1 trillion in cash and securities to date as it addresses the most critical risk, capital and liquidity issues with post-trade impact today.
Prior to OCC, the last CCP to connect to Baton’s Core-Collateral ecosystem was LCH SA, allowing clearing members to use the solution to automate and optimize collateral holdings and expedite the movement of cash and securities to LCH SA alongside holdings with CCPs including LCH Ltd, CME Clearing, Eurex, ICE Clear Europe, ICE Clear US, ICE Clear Credit and SGX.
The technology enables firms to automate end-to-end collateral workflows for cleared derivatives, improve decision-making by providing intraday visibility of current margin obligations and collateral holdings, and the ability to instruct multiple cash and securities movements through a single interface.