Baton News

Few in the markets and banking business will argue with the notion that streamlining operations through removal of manual processes and reduction of settlement risk is a worthy goal.

In March, we were confronted with a stark reminder of the challenges banks face during periods of extreme volatility, as customers drew down on agreed credit facilities, and risk weighted assets (RWA) and associated capital requirements rose.

As COVID-19 advanced, financial markets experienced record volatility, resulting in record transaction volumes and collateral pledges at central clearing counterparties (CCPs).

With the increase in the number and size of margin calls – as well as other financial obligations – speed, automation, visibility and control over cash and collateral is more important now than ever.