Optimize your portfolio the smart way

Optimize collateral coverage across obligations while balancing funding costs, HQLA preservation, and operational efficiency.

Portfolio-wide decisions grounded in eligibility data and practical constraints. Higher funding costs, expanding clearing obligations and volatile margin demands sharpen the economics of every collateral decision. Yet many firms still assemble inventory, eligibility, pricing and movement constraints across fragmented systems and spreadsheets, then run optimization sequentially for individual venues.

Portfolio-wide optimization

Optimization run sequentially for individual venues can consume an asset in one decision even when it would create greater value elsewhere. The result is avoidable funding cost, scarce HQLA tied up unnecessarily, and additional movements for operations teams to manage.

  • Built using a range of optimization models

    Solves the full allocation across every constraint and objective at once, not venue by venue.

  • An evolution of proven logic

    Extends Baton’s existing waterfall optimizer from one-to-many decisions to many-to-many, portfolio-level allocation.

  • Eligibility is the foundation

    Normalized schedules, concentration limits and house rules, because incomplete eligibility returns the wrong answer with false precision.

  • Every recommendation is executable

    Delivery restrictions and cut-off times are solved with the allocation, never applied after it.

  • Designed to extend beyond CCPs

    Starts with cleared collateral, built to add bilateral schedules and inputs such as internal funding rates and nostro economics.

Portfolio-wide decisions, grounded in eligibility data and practical constraints.

One run, every venue

One connected journey, from the collateral you hold to the movements you approve.

  1. 1Sources and uses

    Cash and securities inventory alongside margin obligations across venues, with unavailable assets identified.

  2. 2Eligibility

    Schedules, haircuts, limits, house rules and delivery constraints, so every move is fully evaluated and confirmed as possible.

  3. 3Your weighting

    Weight the objectives across delivery cost, HQLA preservation and number of moves.

  4. 4Simulate, then run

    Adjust and rerun the simultaneous optimization and compare key metrics before approval.

  5. 5Approve and execute

    Review movements, apply approval controls, then send instructions and track completion.

  • Cost minimizationDeliver the cheapest eligible asset
  • HQLA usage minimizationKeep HQLA; cover obligations with less liquid eligible assets
  • Movement minimizationFewer settlement tickets

Optimization weightsYou set how much each objective matters

Allocation recommendationCovers multiple obligations in one run

Output: one allocation recommendation covering multiple venues, with a recorded rationale, ready for instruction.

“Collateral optimization only creates value when the answer is economically sound and operationally executable. Our advanced capability brings portfolio-wide decision-making together with the eligibility intelligence and movement workflows firms need to act.”

Arjun Jayaram, Founder and CEO, Baton Systems

One collateral stack. Your choice.

Standalone single modules, the full Baton solution, or any combination, alongside your existing systems.

  • Sources and uses

    Consolidated, real-time view of collateral inventory and obligations.

  • Eligibility

    Normalized schedules, rates, limits and internal rules.

  • Multi-Venue Optimizer

    Portfolio-wide scenarios using your objectives and constraints.

  • Instruction and movement

    Approval, instruction and movement tracking across connected venues.

Start with the modules you need today, then expand as your operating model matures.

The benefits

  • Improve collateral economics

    Lower the overall cost of delivering collateral, supporting net interest income.

  • Protect scarce liquidity

    Retain HQLA wherever cheaper eligible assets satisfy the obligation.

  • Fewer avoidable movements

    Recommendations stay executable and the operational burden falls.

  • A clear record of every trade-off

    Scenario comparisons show why the selected allocation performs better, with the rationale retained.

  • One recommendation, every desk

    Front office economics, operational feasibility and treasury inputs resolved in the same solve.

Go deeper

See the capability at FIA Expo in Chicago, November 2–4, or explore how Baton determines what’s eligible before an asset is pledged.

Meet Baton at FIA Expo 2026

The Eligibility Service

A collateral decision is not a completed movement

1 Nasdaq and The ValueExchange, Making the Case for Tokenised Collateral, cited in Baton blog, 20 April 2026