Welcome to Baton’s podcast series ‘Transforming Financial Markets’. Hosted by Baton’s Founder & CEO Arjun Jayaram, the podcasts explore innovation in payments and post trade processing. Each show features special guests and thought leaders who are shaping the future of the markets.

In this episode we are delighted to be joined by industry experts Ketan Patel, Policy Advisor and Head of Financial Markets Risk Analysis, Federal Reserve Bank of Chicago, and Ulrich Karl, Head of Clearing Services, ISDA. We examine the whole margin collection and collateral process and how the market is reacting to some of the inefficiencies exposed by market volatility.

In this podcast we discuss:

  • How market participants faced a period of unprecedented stress as a result of increased trading volumes and market volatility in 2020. 
  • Central banks intervene to provide liquidity in the marketplace, but only as a short-term fix.
  • Is there a liquidity problem in the markets?
  • How will financial markets better prepare for future bouts of market volatility?
  • Can the industry achieve intraday repo? 
  • From a CCP standpoint, higher initial margins reduces risks, but how does this impact downstream participants such as FCMs?
  • What further changes are required to optimize collateral for cleared derivatives from both an operational and financial perspective?

 

To find out more about how Baton is transforming Financial Markets visit Baton Systems | Payments accelerated