USE CASE｜INTEGRATION MANAGER
Accelerating Venue and CCP Connectivity
Integrate Data from Multiple Sources Including CSDs, Carry and Clearing Brokers, CCPs and Other Venues Quickly and Efficiently with Baton’s Integration Manager
The Challenge: Achieving Accurate Data Consolidation for Real-time Insight
Financial institutions face growing pressure to achieve real-time visibility into the sources and uses of their collateral. Managing collateral relationships across multiple central counterparties (CCPs) and other venues while juggling holdings of unencumbered assets across a spectrum of custodians, central securities depositories (CSDs), and nostro account providers has created a landscape of remarkable complexity. One under pressure as the value of collateral being posted continues to rise.
To effectively navigate these challenges, institutions need to achieve a unified, real-time view of their assets across cash and securities. Yet this presents significant issues due to:
- Fragmented and Inconsistent Data Streams: Data from CCPs, custodians, and other sources often arrives in disparate formats, with varying frequency and via a range of delivery channels. Aggregating and standardising this information using traditional data integration methods can prove error-prone and resource-intensive.
- Prolonged Integrations: Onboarding new data feeds or adapting to system updates requires significant time and developer resources, delaying operations and hampering scalability.
As a result, many firms struggle to consolidate data for accurate real-time insights, hindering effective collateral management decision-making, risk assessment, and optimisation efforts.
To address these challenges, firms need a comprehensive, robust and scalable solution that:
- Provides real-time data aggregation to deliver a unified view of cash and securities collateral across all sources, ensuring transparency and increasing control.
- Offers scalability and flexibility to seamlessly integrate new CCPs or custodians while maintaining data accuracy as business needs evolve.
- Ensures operational simplicity and adaptability to manage changing data formats without disruption to maintaining data integrity.
- Enables accurate, reliable consolidated data to fuel automated workflows to optimise collateral usage, improve risk management, and boost operational efficiency.
The Solution: Baton’s Integration Manager
Baton’s low-code Integration Manager is purpose-built to address these challenges, enabling faster venue and CCP connectivity, improved data accuracy and availability across business lines.
By leveraging a low-code interface, the platform allows for the aggregation of data from multiple sources in real time and normalises this data into a canonical format that institutions can then integrate into automated collateral workflows.
Ensuring that unified and traceable data flows across systems, collateral management teams can then leverage this high-quality data to make more informed decision-making, to optimise liquidity use and strengthen risk management.
How Baton’s Integration Manager Solves Critical Venue and CCP Connectivity and Integration Challenges
Lengthy and Complex Integrations
Challenge: Integrating with CCPs and custodians can take weeks due to the diversity of data formats and protocols, delaying time-to-market.
Solution: Baton’s Integration Manager reduces data integration timelines by up to 90%. With a drag-and-drop, low-code interface, firms can connect to CCPs within hours instead of weeks, enabling faster operational readiness.
Poor Data Quality and Visibility
Challenge: Fragmented data can lead to inconsistent, inaccurate information, impacting decision-making and compliance.
Solution: Aggregate and normalise data received from various sources and in differing formats like XML, JSON and CSV, supporting protocols such as SFTP, REST APIs, and MQ. Then transform fragmented data into a standardised feed that can be used to power automated workflows, ensuring consistent, high-quality data flows across key systems.
Manual, Inefficient Processes
Challenge: Relying on manual workflows for data integration and collateral management leads to delays, errors, and operational risk.
Solution: Build low-code custom workflows to automate integration tasks to improve efficiency, boost productivity and reduce errors. Use this data to power proprietary or Baton-licensed intelligent collateral workflows.
Lack of Scalability and Flexibility
Challenge: As asset pools grow or new CCP relationships emerge, traditional systems struggle to scale or adapt to evolving data formats.
Solution: A drag-and-drop interface removes the need for extensive coding during integrations. It scales easily to handle new CCPs, custodians, and data formats. Its low-code setup allows quick adjustments if, for example, CCP data delivery methods change, without major development work.
Benefits of Baton’s Integration Manager for Accelerated Venue and CCP Connectivity
By addressing these challenges, Baton’s Integration Manager delivers measurable improvements:
Accelerated Integration
Reduce CCP integration timelines from weeks to hours, ensuring faster venue and CCP connectivity, and increased operational agility.
Enhanced Data Accuracy and Visibility
Gain real-time insights into collateral sources and uses, ensuring consistent, high-quality data across systems to inform better decisions.
Increased Operational Efficiency
Automate manual workflows, reduce errors, and improve productivity to minimise operational risks.
Scalable and Adaptable
Easily integrate new CCPs and custodians or adapt to evolving market needs without extensive reconfiguration.
Take the Next Step Toward Smarter Collateral Management
With Baton’s Integration Manager, financial institutions can overcome the complexities and costly delays caused by venue integration for active collateral management, achieve greater operational efficiency, and unlock real-time insights for superior decision-making.
Contact us today to learn how Baton’s integration Manager could help your firm to accelerate CCP and other collateral connectivity and improve data accuracy and availability across your collateral management business.
Schedule a demo and experience the power of Baton’s Integration Manager firsthand.