This article highlights the challenges faced by derivatives users due to stricter regulations and a surge in margin calls across the finance industry. The increased focus on collateral management arises from the need to reduce counterparty risk and ensure the smooth functioning of the financial system. The article specifically mentions Baton Systems and its president, Jerome Kemp, as a company experiencing increased demand for its collateral services, primarily driven by clients of futures commission merchants who have felt the strain of increased margin calls.
