A collateral decision is not a completed movement
Direct two-way connectivity to CCPs, custodians and nostro accounts: instructions out, acknowledgements back.
Value is realised only when collateral can be instructed, settled and monitored, and exceptions can be identified and resolved.
- $13T+in asset movements processed by Baton's DLT
- $3.3T+mobilised through Core‑Collateral from January to October 2024
- Up to 90%shorter venue and CCP data integration timelines
Instruction
Margin must be posted to the CCP by strict deadlines, sometimes from the firm's own capital if client funds haven't landed yet.
- Intelligent workflows
Intelligent workflows carry the rules engine's asset selection straight into a pledge or recall instruction.
- Direct to every venue
Instructions go out over direct two-way connections to CCPs, custodians and nostro accounts.
- No bespoke build
Baton's low-code Integration Manager connects to existing systems without bespoke development.
A major U.S. bank and clearing firm used Core-Collateral to address inefficient asset movements, reporting increased operational efficiency and improved profitability.
Settlement status
Mounting regulatory and reporting obligations demand real-time, evidenced control rather than after-the-fact reconciliation.
- Acknowledgement returned
Each venue's acknowledgement comes back over the same two-way connection that sent the instruction.
- Across every relationship
Status across every bank, CCP and carry broker relationship, without logging into a single portal.
- Ready for T+0
As settlement compresses towards T+0, status stays current rather than being reconciled after the event.
Exceptions
Getting it wrong is infrequent but serious: a missed margin call or breached threshold risks financial penalties, reputational damage, loss of CCP membership and closer regulatory scrutiny.
- Alerts first
Exceptions surface as alerts, the step between visibility and automated movement, so a delay is seen before it becomes a missed call.
- Less firefighting
Time spent firefighting collateral delays goes back to the clients that drive growth.
- Built for growth
More exchanges, currencies and legal entities make manual handling harder, not easier, so exceptions are tracked on infrastructure that scales with the firm.
The cost of incomplete execution
Disconnected handoffs and limited status visibility create settlement delays, manual investigation and uncertainty about whether collateral is in place.
“With firms actively preparing for US Treasury clearing, we view the FICC link to the Baton network of clearing participants as an important enabler of collateral efficiencies.”
Brian Steele, President, Clearing and Securities Services, DTCC
Speak with a collateral specialist
Tell us what you'd like to discuss and we'll arrange a time.
