Post-Trade Risk Management Risk Webinar
Live Webinar
Post-Trade Risk Management: Transformed with Real-time Visibility and Control
Would your firm’s post-trade risk management processes and controls survive regulatory or internal scrutiny?
Effectively managing and proactively controlling counterparty, operational, payment and liquidity risk is a challenge in itself. Throw in pressures to reduce costs and enable new revenue opportunities with a dependency on outdated, siloed legacy systems and processes, and fragmented data and it’s no wonder risk management teams are struggling.
Join our webinar to learn how transforming your firm’s ability to effectively manage and control risk – without ripping and replacing legacy systems – could be much easier than you thought.
Our capital market experts will be explaining how Baton’s low-code Core-Payments® solution provides risk managers with the smart, automated workflows, real-time alerts, data-driven analytics and on-demand controls they need – configured to meet their specific requirements.
- Rapidly IDENTIFY emerging operational, counterparty, liquidity and payment risks in real-time
- Accurately ASSESS different types of risk with the power of historic and real-time data-driven insights
- Effectively MITIGATE risk with robust, automated workflows powered by conditional, configurable and consistent rules and controls across your entire wholesale post-trade process.
Across all business and technology silos – with real-time, uncompromised visibility and control across the end-to-end wholesale post-trade process.
Baton's Webinar Speakers
Mitigating Post-Trade Risk
Core-Payments® - Transform Your Firm’s Ability to Proactively Mitigate Risk
Would your firm’s counterparty, payment, liquidity and operational risk management controls withstand regulatory scrutiny?
As risk managers grapple regulatory and internal pressures to more effectively manage and control risk in a changing environment, the only constant appears to be the perpetual restrictions generated by their legacy and siloed systems and processes.
Designed to liberate banks from legacy constraints, Core-Payments enables risk managers to achieve their nirvana and effectively and proactively identify, assess and mitigate risk with complete real-time visibility and control.
Read on to explore the configurable no/low code rules and robust controls risk managers can automatically instigate to mitigate risk across all payment flows and business lines.
Introducing Baton’s no-code payment hold and release rules – just one of the ways Core-Payments provide risk managers with effective payment controls
Robust Controls Across All Payment Flows and Business Lines
Core-Payment’s configurable no/low code rules and robust controls empower risk managers to mitigate risk across all payment flows and business lines, with the ability to:
- Create low-code risk controls powered by real-time, aggregated, payment data and analysis
- Orchestrate the automated, controlled and safe release of settlements on a firm-wide basis
- Control the release of payments across all channels with configurable and auditable no-code hold and release payment controls
- Automatically adjust risk management strategies and controls in real-time in response to intraday developments
- Stress counterparty and liquidity conditions quickly in order to understand your firm’s resiliency based on the realistic factors that could have a material business impact. These are rules and controls available through Core-Payments
Core-Payment's Risk Controls in Action:
Mitigate Counterparty Risk
Safely settle transactions on a payment on payment (PoP) basis, ensuring counterparty payments are only released once their obligation has been fulfilled. With Core-Payments you can orchestrate the controlled and safe settlement of all transactions using smart and automated workflows, powered by real-time payment intelligence and governed by the low-code rules and conditional controls you specify.
Mitigate Payment Risk
Manage wholesale payment risk at scale with Core-Payment’s no-code hold and release rules. Strengthening operational resilience across the entire payments process, our no-code rules enable risk managers to immediately stop and control the release of all required payments and settlements. These highly configurable, automated and robust no-code hold and release payment controls can be quickly created and instantly implemented across all business areas and payment flows.
Mitigate Operational Risk
Replace manual processes with automated and simplified payment and settlement processes across client and business silos powered by collaborative, automated workflows. Using real-time data generated by the continuous reconciliation of settlements, operations managers are alerted in real-time to pending and realised settlement breaks. Via their real-time dashboard they can then access the information needed to more quickly resolve operational bottlenecks and fails.
Blog Post: Mitigating Counterparty Risk: Harness the Power of Real-time Reconciliations
Blog Post: Transform Your Firm’s Ability to Mitigate Payment Risk With On-Demand Rules
How Core-Payments Mitigates Post-Trade Operational Risks, Elevates Efficiency, and Reduces Costs
Learn How Core-Payments Enables Banks to Identify, Assess, and Mitigate Risks Effectively
Core-Payments For Risk Managers
Core-Payments®: Firm-Wide Risk Management
Transform how you identify, assess and mitigate risk – the way you want – with complete visibility and control across the entire operational lifecycle, wholesale payments process, all business silos and processes.
Real-time, Effective and Proactive Risk Management and Control
Managing and controlling counterparty, operational, payment and liquidity risk, whilst balancing pressures to reduce costs and enable new revenue opportunities often presents significant challenges. Restricted by siloed systems and processes, delayed access to critical information, and a lack of automation, many risk managers struggle to put in place the processes and capabilities necessary to quickly identify, assess and mitigate risks – whilst retaining business efficiencies and competitiveness.
Designed to liberate risk managers from legacy constraints, our low-code, cloud-based Core-Payments solution enables capital market firms to consistently, effectively and proactively manage risk in real-time with complete visibility and control across all payment flows and business lines.
Introducing Baton’s no-code payment hold and release rules – just one of the ways Core-Payments provide risk managers with effective payment controls
Identify. Assess. Mitigate.
Core-Payments: Effectively identify, assess and proactively mitigate risk
Identify:
- Be immediately notified of emerging risks with low-code real-time alerts – configured based on your criteria and thresholds
- View consolidated data sourced from multiple systems and sorted into your preferred framework using our real-time no-code dashboards
Assess:
- Focus your expertise on managing risk rather than attempting to gather the data required to do so
- Make informed decisions with easy access to real-time and time-stamped historical post-trade data revealing all state changes up to and including payment
- Assess financial resilience by stress testing for the unexpected and use predictive analytics to visibly expose potential risks and evaluate their impact
Mitigate:
- Create low-code risk controls powered by real-time, aggregated, payment data and analysis
- Orchestrate the controlled and automated release of safe cash settlements on a firm-wide basis
- Immediately control the release of all selected payments across all channels with no-code hold and release payment controls
- Automatically adjust risk management strategies and controls in response to intraday developments in real-time
Core-Payments® Achieve Complete Visibility and Control
Reduce Counterparty Risk
Be immediately alerted to and access on-demand real-time payment information to identify, assess and mitigate settlement risks. Then safely settle on a payment on payment (PoP) basis, implementing automated, conditional controls to ensure counterparty payments are only released once the counterparty has fulfilled their obligations.
Reduce Liquidity Risk with Enhanced Financial Resilience
Monitor and manage intraday liquidity in real-time, set low-code alerts to allow for the instant identification of issues. Assess the impact with access to real-time funding balances, available liquidity, exposures and payment forecasts. Then automatically adjust the sequencing of outbound payments to mitigate risk and avoid a liquidity shortfall. Furthermore, stress liquidity by currency or counterparty to enhance financial resilience.
Increase Capacity and Productivity Without Increasing Risk
Enable capacity growth without increasing risk by replacing manual processes with automation to enforce core policies without the need for exceptional approvals. Expand your market footprint by deploying automated safe-settlement via payment on payment (PoP). All powered with Baton’s cloud based technology.
Reduce Payments Risk
Immediately identify the “live” status of payments and receipts with any given counterparty and accurately assess the level of exposure. Then mitigate payment risk by quickly creating, and instantly activating, no-code payment rules to stop and control the release of all required payments and settlements across all business lines and payment flows.
Enhance Payment Supervision
Activate configurable real-time alerts and via Baton’s dashboards view consolidated data sourced from multiple systems and sorted into your preferred framework, in real-time, related to counterparty and liquidity exposures and operational data. Furthermore, our standardised workflow for handling exceptions includes an auditable approvals process.
Reduce Operational Risk
Replace manual processes with automated and simplified payment and settlement processes across client and business silos powered by collaborative, automated workflows. Be alerted in real-time to pending and realised settlement breaks and identify via your real-time dashboard operational bottlenecks and fails across all business silos and payment flows so resolution can quickly commence.
Blog Posts
How can you make the right risk decision without up-to-date information?
From Herstatt to Credit Suisse: Banking’s Fifty-Year Call for Real-Time Reconciliation
Manage Payment Risk and Drive Business Agility With On-Demand Rules
Real-time Counterparty Risk Management: Harness the Power of Real-time Reconciliations
Contact our Experts
To learn more about our post-trade solutions, please provide your details and one of our experts will contact you shortly
Core-Payments For Operations Managers
Core-Payments® Supporting Post-trade Operations Managers
Enhance risk management and control across the entire post-trade process, empower your business to scale and introduce a new level of efficiency with automated, configurable workflows powered by real-time payment data.
Systematically Mitigate Post-trade Operational Risks, Elevate Efficiency and Reduce Operational Costs
Outdated and costly post-trade payment and settlement processes, often requiring manual intervention, generate significant challenges for post-trade operations managers. With limited oversight, a lack of real-time payment information and siloed payment controls, operations managers often struggle to proactively and systematically mitigate emerging operational risks, drive efficiency programs and effectively reduce operational costs.
Designed to enable post-trade operations managers to overcome these limitations, Core-Payments:
- Automates operationally intensive processes – powering configurable workflows with real-time data to reduce operational risk, increase capacity, generate efficiencies and cost reductions.
- Provides complete oversight across the end-to-end payment and settlement process and access to real-time payments intelligence.
- Equips firms to proactively reduce payment risk with the ability to instantly implement consistent firm-wide payment controls.
- Empowers users to automate safe-settlement via payment on payment (PoP) mechanisms with the ability to configure and control the release of payment instructions.
Core-Payments: Bringing structure, consistency, control and auditability to the post-trade operational management of payment functions.
Real-time Payment Reconciliations • Automated Configurable Netting • Automated Pre-Settlement Affirmations • Automated Settlement Splitting • Real-time Payment Insight • Firm-Wide Payment Hold and Release Controls
Automate and Increase Netting to Drive Post-Trade Efficiencies
Enhance Supervision and Risk Management with Real-time Alerts and Dashboards
Continuously reconciling payments as they’re sent and received, users are alerted in real-time to developing situations and can access configurable dashboards detailing settlement obligations, exposures and operational data. This allows fails to be quickly identified, and exceptions managed with greater oversight and increased control via an auditable process.
Build Scalable More Productive Post-trade Operations and Increase Capacity
Standardise and streamline time-consuming manual processes with automated, collaborative workflows powered by real-time data, configurable rules and controls – processes including real-time payment reconciliations, netting, pre-settlement affirmation, settlement splitting and orchestrated, controlled payment on payment (PoP) settlement.
Reduce High Intensity Manual Workloads in Times of Market Stress
Providing instant access to the real-time status of all payments and the ability to immediately instigate firm-wide payment control rules, operational teams can easily instigate remedial actions without the high volume of manual work typically activated today in times of market stress. With Baton’s no-code rules, users can quickly identify and manage the controlled release of outbound payments and all required approvals.
Reduce Post-trade Operational Risk and Costs
Automate and simplify payment and settlement processes across client and business silos to reduce errors and associated costs with Baton’s collaborative and automated workflows. Benefit from real-time alerts and reports warning of pending and realised settlement breaks. Enable the controlled retirement of expensive legacy technologies.
Improve Client Satisfaction and Expand Counterparty Coverage
Introduce flexible and automated post-trade processes that more effectively meet client requirements. Expand counterparty coverage by deploying automated safe-settlement via PoP. Enrich client relationships with online tools and incorporate processes to support new products and processes faster. Identify and resolve client issues with easy access to post-trade data and the real-time status of payments.
Enable Liquidity Savings
Build the operational infrastructure to enable liquidity managers to access real-time and historic time-stamped payment data and orchestrate the controlled release of payment instructions based liquidity management strategies such as releasing payments at a specific time, by priority order or when a dependency is met, such as fund availability.
Learn More About How Core-Payments Supports Post-trade Operations Managers
Contact our Experts
To learn more about our post-trade solutions, please provide your details and one of our experts will contact you shortly
Core-Payments: Real-time Wholesale Payment Risk Control
Core-Payments®: Real-time Wholesale Payment Risk Control
Immediately stop and control the release of all required payments and settlements in times of market stress
Configurable, automated and robust no-code hold and release payment controls – quickly created and instantly implemented across all business areas and payment flows
Mitigate Payment Risk and Settlement Failures
Market participants and policy makers are increasingly focused on wholesale payment risk. In times of market volatility or when a counterparty becomes a concern, just one erroneous payment could result in existential risk.
However, managing wholesale payment risk on a firm-wide basis can prove technically challenging and operationally intensive. Payments are generated by diverse business areas and across various flows governed by siloed applications controlled at the business level.
Enabling banks to manage wholesale payment risk at scale, Core-Payment’s no-code hold and release rules introduce a new level of control. Strengthening operational resilience across the entire payments process, our no-code rules can be configured to immediately stop all required payments from being executed across all business areas and flows.
Core-Payment’s no-code rules provide yet another example of how Baton Core’s interoperable and extensible business-led design enables banks to put in place smart and highly configurable workflows and effective controls.
Access more resources: Mitigating Payment Risk
Contact our Experts
To learn more about our post-trade solutions, please provide your details and one of our experts will contact you shortly
Life @BatonSystems
Life @BatonSystems
Interested in finding out what it's like working at Baton? Please find below just some of the activities and events that our amazing team members have participated in over recent months.
FIA BOCA, BOCA Raton - Mar 24
We were excited to attend FIA BOCA in Boca Raton again this year, our Founder and CEO, Arjun Jayaram, along with Head of Business Development and Client Success, Tucker Dona, and Senior Director of North American Sales, Ronn Baker, represented the company and discussed how Baton Systems helps firms automate and optimise collateral management.
International Women's Day Celebration - Mar 24
On International Women’s Day, we celebrated the amazing women who contribute to Baton’s success daily with events in our India office.
Baton's UK Team Holiday Party - Dec 23
Baton’s UK team came together to celebrate the holiday party, creating a joyful atmosphere filled with laughter, camaraderie, and the spirit of the holidays.
The Digital Dollar Project, Washington - Nov 23
We were delighted to attend the Digital Dollar Project’s event in Washington this year. Our team members, Ronn Baker, and Ravindra Madduri attended and led a fireside chat, discussing how Baton Systems’ suite of DLT-based solutions enable wholesale market participants to safely expedite the movement of assets and securities.
The Full FX, London - Nov 23
We were delighted to attend The Full FX event in London this year. Our Head of Sales and EMEA, Alex Knight, participated as a panelist in a discussion on ‘Delivering Solutions to T+1,’ moderated by Colin Lambert. They explored the challenges and solutions of T+1 settlement.
AFME’s OPTIC, Brussels - Oct 23
We were thrilled to attend AFME’s OPTIC in Brussels this year. Our team members, Alex Knight and Alistair Griffiths, attended and exhibited at this event. It provided a great opportunity to catch up with existing clients and meet new contacts across the industry.
FIA EXPO & The FullFX Events, Chicago - Oct 23
We were excited to attend both the FIA EXPO and The FullFX events in Chicago. Our Founder and CEO, Arjun Jayaram, along with the Baton Team, participated in the events. Arjun was a panelist in a discussion on ‘The Real FX Revolution – Behind the Trade’ at The FullFX event. These events provided us with valuable opportunities to connect with our clients and prospects.
SIBOS, Toronto - Sept 23
We are delighted to have attended SIBOS 2023 this year. Our Senior Director of North American Sales, Ronn Baker, represented Baton Systems at this prestigious industry event. With his wealth of knowledge and expertise in the industry, Ronn actively engaged with industry professionals, networked, and explored opportunities for collaboration.
Mohammad Abidi, Tucker Dona & Ravindra Madduri visit Baton's India office - June 23
ISLA Conference, Lisbon - June 23
The Euroclear Collateral Conference, Brussels - May 23
We are thrilled to have the opportunity to participate in the annual Euroclear Collateral Conference held in Brussels. Our Head of Sales and EMEA, Alex Knight, along with our Director of EMEA Sales, Alistair Griffiths, represented our company at this event. It was a great opportunity to connect with leading industry representatives from the broader collateral world and to benefit from a series of the very interesting and informative presentations and informal discussions.
Fintech Americas - May 23
We were very excited to participate in this year’s Fintech Americas conference in Miami. Our Senior Director of North American Sales, Ronn Baker, represented our company at the event. Ronn witnessed the remarkable innovation shaping a significant part of the world and had the pleasure of meeting many new prospects. The atmosphere was electric, and the influential leaders present showcased their remarkable impact on the region.
FX Markets Asia, Singapore - Apr 23
We are delighted to have participated in this year’s FX Markets Asia conference in Singapore, where our President – Jerome Kemp, Head of Sales and EMEA – Alex Knight and Program Manager – Akila Ramadoss, represented our company. It is with great pride that we announce our success in being awarded the “Best FX Settlement and Risk Mitigation Solution” award. Moreover, we were thrilled to be invited to speak on three panels throughout the event, reaffirming our commitment to sharing our expertise and insights with fellow professionals. We look forward to continuing to push boundaries and deliver innovative solutions to our clients.
FIA BOCA, BOCA Raton - Mar 23
We were excited to attend FIA BOCA in Boca Raton this year, where our Founder and CEO – Arjun Jayaram, President – Jerome Kemp, Head of Sales and EMEA – Alex Knight, Head of Business Development and Client Success – Tucker Dona, and Senior Director of North American Sales – Ronn Baker were all in attendance. In addition to exhibiting at this significant event for the derivatives industry, we had the opportunity to reconnect with current clients and make new connections across the field. Jerome Kemp also took part in a panel discussion on “The Market of the Future.”
International Women's Day Celebration - Mar 23
On International Women’s Day, we celebrate the amazing women who are the backbone of Baton Systems. We are proud of our highly talented and motivated team, who are driving significant impact in our company. Our women employees are integral to the success of Baton Systems, whether in software engineering, product management, operations, or HR. We extend our appreciation and gratitude to all the women at Baton Systems for their unwavering dedication, hard work, and invaluable contributions. Your unique perspectives, expertise, and talent help us foster innovation and attain our goals.
Baton's Intern Group - Feb 23
Baton Systems is thrilled to welcome our largest intern group, consisting of talented individuals from Government Engineering College, Thrissur, Christ College of Engineering, SRM Institute of Science and Technology, Ramapuram, Anna University-MIT Campus, and Amity University Lucknow Campus. We are proud to have such a diverse and skilled group of individuals join us. Let’s give them a warm welcome to the Baton Systems family!
London Networking Drinks Event - Feb 23
In February, we hosted a successful networking event where our esteemed attendees gathered to socialise over drinks and canapés. The atmosphere was fantastic, and it was great to see everyone enjoying themselves. We would like to extend our sincere gratitude to all who attended, our entire leadership team from Baton who were in attendance and we look forward to more events like this in the future.
Chennai New Office Inauguration - Feb 23
We are thrilled to announce our recent office expansion in Chennai! Our new space is three times larger than before and was officially opened by our Sonia Bathija – Head of Operations and Ananth Ramakrishnan – Head of Engineering. The inauguration was made even more special as we welcomed new interns to the Baton family. With the move to a larger space in London earlier this year, we are excited to be back in the office and ready to enhance in-person collaboration, strengthen relationships with our employees, and start 2023 on a high note. Join us in celebrating this important milestone for Baton Systems!
Baton's Work Week & Mahabalipuram Visit in Chennai - Dec 22
In December, Baton’s Chennai team along with our Founder and CEO – Arjun Jayaram, President – Jerome Kemp, COO – David Ornstein, and Global Head of Sales – Alex Knight, visited one of the famous tourist sites in India called Mahabalipuram, a historic city and UNESCO World Heritage site famous for its shore temples and monuments. The Mahabalipuram team visit was followed by lunch and games at the “Radisson Blu” resort and a wonderful panel discussion by the leadership team. Finally, the day happily ended with a group photo session.
FIA EXPO, Chicago - Nov 22
We were thrilled to attend FIA EXPO in Chicago again this year. Our Founder and CEO – Arjun Jayaram, President – Jerome Kemp, Senior Director of North American Sales – Ronn Baker, and Head of Business Development and Client Success – Tucker Dona, attended. We also exhibited at this important global gathering for the derivatives community, which provided a great opportunity to catch-up with existing clients and meet with new contacts across the industry.
Baton's UK team expansion - Nov 22
We were delighted to welcome our new joiners, Igor Gnyp, Director of Finance, Alistair Griffiths, Director of EMEA Sales, and Narcis Dimuleasa, Marketing Manager, to the Baton family and continue our growth.
Singapore cocktail party - Nov 22
In November, our President, Jerome Kemp, and Global Head of Sales, Alex Knight, caught up with old and new industry friends in Singapore. We were delighted to co-host a great cocktail party to kick-off Singapore Fintech Festival week with Illuminate Financial, Cloudwall, Copper.co, Notabene, and Talos.
Joining BNY Mellon's Singapore fintech panel session - Nov 22
Our President, Jerome Kemp, was invited by BNY Mellon to join a panel discussion at their Singapore offices discussing financial market infrastructure and the benefits of strong collaboration between banks and the fintech community. We were thrilled to participate and join industry leaders to debate this interesting topic during Singapore Fintech Festival week.
SIBOS, Amsterdam - Oct 22
We were delighted that our Founder and CEO, Arjun Jayaram, was invited to speak at SIBOS – an event that brought together more than 10,000 participants in Amsterdam. Arjun Joined a discussion with industry leaders from Microsoft, Bain & Company, Citi, State Street and CLS Group to explore how FX should evolve in a world transforming the way it moves value. Arjun provided an interesting perspective, including explaining how T+0 settlements are not only possible, but here at Baton we have been providing Payment vs Payment (PvP) settlements on a T+0 basis for 3+ years.
Baton's college visits - Aug & Sept 22
During August and September, our recruitment team visited 3 colleges in-person and met virtually with participants at a 4th institute. We welcomed over 1,000 fresh minds to learn about Baton Systems, received applications from over 600 participants and were thrilled to offer places to 40+ fantastic applicants!
Our Founder and CEO, Arjun Jayaram, visits Baton's India office - Aug 22
After a 2 year lockdown induced break, our Founder and CEO was delighted to be back visiting our Chennai office reconnecting with existing colleagues and meeting new joiners in-person. Much fun was had by all across 4 days of valuable face-time, team building activities, food and games.
Our Chennai office reopens - May 22
Baton‘s India team celebrated the reopening of our Chennai office with a team lunch – providing an opportunity for new joiners to meet their colleagues in-person.
"The people at Baton are friendly, enthusiastic and innovative - these are some of the best people I’ve worked with."
– Ragu Raymond, Director of Business Development and Client Success, Baton Systems
Core-Liquidity
Core-Liquidity®
Transfer asset ownership, in real-time, on-demand, 24/7.
With Core-Liquidity® we’re solving the old money problems associated with controlling and tracking the movement of funds with the best in new, ledger technology. Core-Liquidity, allows asset ownership to be transferred in real time, on demand, 24/7, in a legally enforceable way. It’s programmable money on existing payment rails.
Welcome to Baton. Post-Trade. Redefined.
Minimise liquidity usage and funding costs
It’s challenging to track and balance liquidity between entities and some firms find themselves crossing large spreads on interest payments and charges when they’re actually sufficiently funded to avoid these costs.
Core-Liquidity facilitates real-time, friction-free cash movements between accounts. Providing real-time reporting and smart workflows that allow you to optimise the netting and sequencing of cash movements, so they can be matched to your firm’s binding constraints.
Core-Liquidity: Transfer asset ownership in real-time
Alex Knight, Global Head of Sales and EMEA at Baton Systems introduces and demonstrates Core-Liquidity.
Baton's Core-Liquidity is a solution based around a set of wallets that are used to share an underlying cash account with a nostro bank, allowing for real-time frictionless movements of cash.
Watch this video to learn more about Baton Core-Liquidity
THESTATISTICS
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THE PLATFORM
Changes of ownership controlled by your configurations and instructions
The Baton ledger reflects the allocation of asset ownership across a range of sub-accounts or wallets. Changes of ownership are driven through smart workflows, according to the configuration and instructions that you determine.
They’re completely flexible- and enforced by a robust rulebook, ensuring irreversibility and enabling you to achieve settlement finality.
BENEFITS:
Improved Liquidity
See huge improvements in the use of liquidity, at the firm level, with lower funding and capital costs.
Improved Control
Gain real-time reporting and control over the movement of funds between your affiliates.
Improved Performance
Reduce the operational and third-party costs associated with internal cash transfers.
See Baton Core® in Action - Book a Demo with our team Today!
Core-Liquidityat a Glance
Further reading, reference material, white papers and industry articles.
Learn about Baton's CORE solutions for FX Settlement, Payments and Collateral Management
Core-FX®
Safely settle bilateral FX trades, when you want to - immediately and on-demand via PvP.
Core-Payments®
Gain complete, real-time visibility and orchestrated control of all wholesale payments and settlements across all business silos.
Core-Collateral®
With Core-Collateral, FCMs and CCPs can automate and optimise collateral holdings and expedite the movement of cash and securities.
Contact our Experts
To learn more about our post-trade solutions, please provide your details and one of our experts will contact you shortly
Core-Collateral
Core-Collateral® - Automate and optimise collateral management
With banks posting billions of dollars in collateral, the ability to quickly identify and assess opportunities to optimise allocations and rapidly mobilise assets can have a massive impact on profitability.
Transform how your firm manages collateral with real-time visibility and centralised control across all available assets and expedite movements across all connected venues.
Core-Collateral: Trusted by 3 of the Top 5 Clearing Firms to Orchestrate Optimised Collateral Movements Across the Largest CCPs
Did you know: Using Core-Collateral, clearing members have leveraged real-time balances to efficiently instruct bulk movements to CCPs, optimising the use of all available collateral.
This has resulted in a tenfold increase in movements without additional operational efforts.
Real-time, Active Management and Risk Reduction
Actively manage posted collateral in real-time and reduce risks with the ability to continuously monitor and be alerted in real-time to excesses or deficits in the collateral you hold across venues.
Make More Collateral Moves Every Day
Move collateral quickly and efficiently using a single consolidated dashboard to pledge and recall multiple instructions for your entire business, including to 13 major CCPs (and growing).
Increase Operational Efficiency and Scalability
Replace inefficient and time-consuming manual processes with scaleable, smart, automated workflows governed by configurable predefined rules and on-demand access to aggregated and normalised venue and internal data.
Increase Financial Efficiency
Use automated rules and alerts to instantly identify inefficient collateral use with a real-time view of all collateral held across all of your connected venues, along with haircuts, interest rates and collateral usage fees. Then use our optimisation engine to determine how your collateral could be more effectively allocated.
Optimise Collateral Allocations
Optimise collateral usage with automated rules set to your requirements to ensure collateral is placed correctly with automated monitoring.
Improve Client Service
Rapidly mobilise client collateral posted to your firm using automated rules to move assets quickly and efficiently to their optimal venues.
Automate and Expedite the Movement of Cash and Securities with Direct Connectivity to 13 Major CCPs, Including the Largest 9, Covering 95% of Global Initial Margin*
• EUREX
• CME
• ECC
• OCC
• SGX
• JSCC
• LCH Ltd – Swapclear
• LCH Ltd – Forexclear
• LCH SA – CDS Clear
• LCH SA – Equity Clear
• ICE Clear Europe
• ICE Clear US
• ICE Clear Credit
Source: *According to Public Quantitative Disclosures (PQDs) data
“We’re delighted to help clients find increased efficiencies through improved collateral mobilisation in the clearing process.”
Graham Gooden, EMEA Head of Triparty Collateral Management, J.P. Morgan
“We are pleased to have connected to Baton, working together to help clearing members increase the speed in which collateral movements settle.”
Frank Soussan, Global Head of CDS Clear at LCH SA
“Working with Baton, we will be delivering a solution at the leading edge of innovation.”
Victor O’Laughlen, Digital Business Leader at BNY Mellon
Avoid Inefficient or Excessive Collateral Use: Rapidly Identify, Assess, Optimise and Mobilise your Assets
Identify
- In real-time, margin requirements, cash, non-cash and excess at CCPs – configured to your specific strategy to manage requirements.
- In real-time, all available assets (both encumbered and unencumbered) across your universe of locations.
- Be alerted in real-time to changing balances or obligations, such as when there is a change in excess held at a given venue that breaches your predefined thresholds.
Assess
- Real-time information about the sources and uses of cash and non-cash collateral in conjunction with up-to-date eligibility schedules, including haircuts, collateral usage fees, interest rates, concentration limits etc.
- View this information across all venues, alongside other business inputs, via a single source of aggregated and normalised data (UI or API).
- Then review the opportunities this insight generates to enhance your use of cash and non-cash collateral.
Optimise
- The value and composition of collateral allocations with automated rules configured for your specific requirements to optimise.
- Schedule the optimal times to orchestrate automatic placement on an event-driven basis or based on your recommended cadence.
- Alternatively, leverage your own optimisation tools with the benefit of the connectivity and data that Baton supports.
Mobilise
- All assets as instructed quickly and efficiently with direct CCP, custodian and nostro account connectivity.
- Instruct multiple (bulk) cash and collateral pledge and recall movements in real-time via a single consolidated dashboard to all venues.
- By integrating Core-Collateral with your existing payment systems, there’s no need to re-key movement instructions, removing the constraints associated with operational capacity and eliminating operational risks.
Latest Announcements:
Baton Systems collaborates with J.P. Morgan to Expand CCP Coverage for Collateral Management Optimisation Solution
BNY Mellon and Baton Systems announce collaboration to deliver enterprise collateral optimisation solution
THESTATISTICS
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Latest Blog Posts
Blog Post: Maximising Margin Efficiency: Analysing the Gross vs Net Margin Difference
Blog Post: Eliminating Process-Based Fails: How Baton Systems is Improving Collateral Management
Blog Post: Choosing the optimal assets for CCPs
Access More Resources to Learn How Our Core-Collateral Solution Could Help Your Firm Automate and Optimise Collateral Management Effectively
Contact our Experts
To learn more about our post-trade solutions, please provide your details and one of our experts will contact you shortly
Core-Payments - Real-time insight & payment control
Core-Payments® - Real-time payments insight and payment control
Complete, real-time visibility and orchestrated control of all wholesale payments and settlements across all business silos.
Reduce intraday liquidity and funding costs, mitigate settlement risk and decrease operational costs with access to real-time payment insight and actionable analytics so you can automate and control the release of cash settlements on a firm-wide basis.
Proven and being used in production by a tier 1 bank
Reduce Funding Costs and Settlement Risk with Real-time Intelligence and Payments Control
Relying on outdated, operationally intensive and costly post-trade processes that lack critical real-time payment insight or effective firm-wide payment controls, market participants are often unable to effectively respond to changing market conditions. As a result, intraday funding decisions are taken without an understanding of current payment balances and available liquidity, and outbound payments continue without the reassurance that counterparty payments have been reciprocated. This can generate funding challenges and unnecessary settlement risk exposure.
Core-Payments has been designed to overcome these challenges and bring complete visibility and control to the end-to-end post-trade payment process. Reconciling payments in real-time, Core-Payments provides users with access to the real-time payment intelligence needed to make informed intraday funding, liquidity and risk management decisions and efficiently orchestrate the controlled and automated release of safe cash settlements across all business areas and payments flows.
Core-Payments: Real-time Payment Reconciliations • Real-time Payments Intelligence • Actionable Analytics • Configurable Netting • Automated Pre-settlement Affirmations • Orchestrated and Controlled Payment Release.
Core-Payments: Redefine How You Run Your Payments Business.
Gain Real-time Insight and Control without Imposing New Technology on Counterparties with:
- Real-time visibility to funding balances and in/outbound payments
- Configurable, automated netting and pre-settlement affirmations
- Automated inbound and outbound real-time payment reconciliation
- Calculation of real-time settlement risk exposure, as well as a clear view of current and forecast funding requirements at the currency level
- Programmable payment control with instantly implemented and completely configurable payment hold and release controls to better manage settlement risk, funding and error queues
- Tools to design payment strategies whilst ensuring throughput targets are met, and to stress for financial / liquidity resilience
Watch this video to learn more about Baton Core-Payments
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Reduce Intraday Funding Requirements with Real-time Payments Intelligence
Learn more about the benefits that Core-Payments offers below.
Reduce Intraday Funding Costs and Capital Footprint
The Real-time reconciliation of inbound and outbound payments on a statement vs ledger basis enables Core-Payments to provide users with real-time visibility of funding balances and available liquidity. Armed with this insight and increased netting capabilities, users can then orchestrate and optimise the timing and sequencing of wholesale payments and settlements to reduce intraday funding costs.
Enhanced Risk Management, Supervision and Compliance
Reduce settlement, operational and payments risk exposure with automated collaborative workflows, supplemented with alerts, direct access to real-time and historic settlement data, and no-code rules for increased payment control. By creating or editing these rules users can immediately stop, and manage the controlled release of, all required payments and settlements in times of market stress.
Reduce Operational Costs
Automating previously manually processes such as payment reconciliations, pre-settlement affirmations and payment netting, Core-Payments allows banks to increase operational efficiencies, reduce the costs associated with managing breaks and fails, and retire legacy technology stacks in a controlled manner.
Revenue Growth Opportunities
Scale your business without the capacity constraints often generated by manual and outdated operational and risk processes and legacy technologies.
Improve Client Satisfaction
Introduce flexible and automated post-trade processes that more effectively meet client requirements. Increase payment control by identifying potential failures before they happen, and more swiftly resolve issues with access to real-time data.
Future Proof Your Payments Business
Accelerate post-trade processes to accommodate shorter settlement cycles whilst maintaining payment controls and efficiencies. Ensure systems conform to new messaging standards and benefit from solutions interoperable with emerging industry products and processes.
Core-Payments®: Real-time Wholesale Payment Risk Control
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Core-Paymentsat a Glance
Further reading, reference material, white papers and industry articles.
Learn about Baton's CORE solutions for FX Settlement, Liquidity and Collateral Management
Core-FX®
Safely settle bilateral FX trades, when you want to - immediately and on-demand via PvP.
Core-Liquidity®
With Core-Liquidity, asset ownership can be transferred in real time, on demand, 24/7, in a legally enforceable way.
Core-Collateral®
With Core-Collateral, FCMs and CCPs can automate and optimise collateral holdings and expedite the movement of cash and securities.
Contact our Experts
To learn more about our post-trade solutions, please provide your details and one of our experts will contact you shortly
Core-FX For PvP Settlement
Baton News: Core-FX for PvP Settlement
Following the announcement of our recent partnership, Baton’s award winning, on-demand FX payment vs payment (PvP) solution, Core-FX, is now being operated by OSTTRA.
The new OSTTRA operated FX PvP settlement orchestration service, continues to be powered by Baton’s distributed ledger technology (DLT), which has successfully and safely settled more than US$8.1 trillion in value to date. Click on the links to learn more about the new service and why we’ve partnered with OSTTRA to accelerate global access to PvP settlement for all market participants.
OSTTRA is a joint venture between S&P Global & CME Group. It brings together CME’s optimisation businesses –Traiana, TriOptima, and Reset – and IHS Markit’s MarkitSERV.
Our new partnership does not impact the operation of our other services and solutions including Core-Payments, Core-Liquidity and Core-Collateral.
Why we designed Core-FX for PvP Settlement
Mitigating foreign exchange (FX) settlement risk (or “Herstatt risk”) by increasing adoption of payment versus payment (PvP) settlement mechanisms has remained the focus of FX policy makers for many years. Core-FX was designed and deployed to extend access to PvP settlement for wholesale market participants, enabling bilateral FX transactions to be settled immediately and on-demand via PvP.
While existing PvP arrangements enabled 18 currencies to be eligible for PvP settlement, Core-FX enabled the benefits of PvP settlement to be extended across all currencies (including emerging market currencies) and counterparties, allowing:
- Real assets, held at commercial bank accounts to be settled via PvP
- PvP settlement processes to be reduced from hours to minutes
- FX settlement participants to pre-agree when to settle and do so multiple times a day – without the liquidity and funding constraints of pre-funding
- Settlement timeframes to be aligned with corresponding liquidity events – for more effective use of funding
- Previously opaque processes to be monitored with full transparency
Following our partnership with OSTTRA, designed to bring new levels of scalability and flexibility to bilateral FX PvP settlement, Core-FX is now operated by OSTTRA.
“Since 2018, HSBC FX Everywhere has used Baton’s Core FX technology to settle 16 million FX trades across 13 different currencies totalling US$8.1 trillion.” Mark Williamson, Global Head of FX & Commodities Partnerships & Propositions at HSBC, March 2024 commenting on the OSTTRA and Baton Partnership
The focus on increasing adoption of PvP settlement
Policy makers and industry groups continue to promote increased adoption of PvP settlement to reduce FX settlement risk. Recent examples include:
May 2023: The European Central Bank’s Supervision Newsletter focused on “Sound practices for managing FX settlement risk” stated “Banks should use payment versus payment (PvP) settlement to eliminate principal risk when settling FX transactions, where practicable.”
March 2023: Bank for International Settlements’ Committee on Payments and Market Infrastructures (CPMI) published a report on “Facilitating increased adoption of payment versus payment (PvP)”
July 2021: Principle 35 of the FX Global Code advocates “Market Participants should reduce their Settlement Risk as much as practicable, including by settling FX transactions through services that provide PVP settlement where available.”
Core-FX from inception to today
2023
- BIS CPMI report identifies Baton Systems’ Core-FX as the only live FX PvP service (in March 2023), of the companies that had responded to the 2021 public call for ideas on potential approaches to increase adoption of PvP
- Baton Systems wins “Best FX Settlement Innovation” at Euromoney Foreign Exchange Awards 2023
- Baton Systems wins “Best FX Settlement and Risk Mitigation Solution” at the FX Markets Asia FX Awards
2022
- Core-FX settles bilateral CNH FX transactions on a PvP basis
- Baton Systems wins “Best New Technology Introduced Over The Last 12 Months – Trading, Risk and Compliance” at the American Financial Technology Awards for Core-FX
- Baton Systems wins “Best Settlement Initiative” for the second year running at the FX-Market e-FX Awards 2022
- Baton Systems’ wins award for its distributed ledger technology at the Sell-Side Technology Awards 2022
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Latest Announcements:
OSTTRA and Baton Systems partner to launch FX PvP service, mitigating settlement risk in FX markets
Baton Systems Triumphs Again, Winning "Best FX Settlement Innovation" at Euromoney Foreign Exchange Awards 2023
Baton Systems wins “Best Settlement Initiative” at the FX Markets e-FX Awards for the second year running
CORE-FX INDUSTRY
RECOGNITION
We are proud to be recognised as a leading industry innovator.
Core-FXat a Glance
Further reading, reference material, white papers and industry articles.
Learn about Baton's CORE solutions for Liquidity, Payments and Collateral Management
Core-Liquidity®
With Core-Liquidity, asset ownership can be transferred in real time, on demand, 24/7, in a legally enforceable way.
Core-Payments®
Gain complete, real-time visibility and orchestrated control of all wholesale payments and settlements across all business silos.
Core-Collateral®
With Core-Collateral, FCMs and CCPs can automate and optimise collateral holdings and expedite the movement of cash and securities.