FX Settlement with Core-FX: Collaborative, Flexible and Secure

Increase liquidity efficiency and minimise FX settlement risk with Baton’s DLT-powered on-demand, netting and PvP settlement capabilities
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“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

Baton’s DLT: $13T+ Settled to date

Baton’s live distributed ledger technology (DLT) enables the secure, on-demand orchestration of Payment-vs-Payment (PvP) settlement for billions of dollars every day. 

To enhance liquidity efficiencies, cut costs, and minimise settlement risks banks need the capabilities to efficiently net and settle FX transactions across currencies with the speed, certainty, and security of atomic PvP settlement.

Baton’s enterprise-grade DLT-inspired Shared Permissioned-Ledger, the powerhouse behind our Core-FX solution, delivers the resiliency, transparency and speed required. This collaborative solution provides continuous, automated netting, seamlessly integrated with on-demand, instantaneous PvP settlement – at a gross, net, or split level – across major and emerging market currencies.  

The result: FX post-trade processing that’s faster, safer and automatically synchronised. Award-winning technology designed to enhance liquidity efficiencies and minimise settlement risk.

Accelerating Global Access to FX PvP Settlement with OSTTRA

Baton’s distributed ledger technology powers OSTTRA’s FX PvP settlement orchestration service. Discover how we’re collaborating to build a settlement network designed to increase global access to PvP settlement for all market participants.

Learn more about FX PvP Settlement

Real-time Technology Built for the Future of FX Post-Trade:

Discover how Baton’s Shared Permissioned-Ledger is Powering a Digital Settlement Network that’s Expanding to Support Real-time Payments Across an Increasingly Diverse Range of Currencies:

On-demand, Atomic FX PvP Settlement

In partnership with OSTTRA, we’re enabling institutions to benefit from FX PvP settlement with legal finality and synchronisation. Gain control of settlement cycles and collaborate with counterparties to execute on-demand programmable settlements when they work best for you.

Streamline workflows, improve liquidity management, and reduce settlement risk and FX processing costs.

Enhanced Funding and Liquidity Management

Streamline cross-border payments with automated netting, dynamic payment splitting and synchronised settlement timings to align with liquidity availability.

These features enable settlement participants to alleviate pre-funding requirements and liquidity pressures, and enhance funding efficiencies.

Transparency and Collaboration

Seamlessly collaborate with counterparties and benefit from complete transparency across the entire FX post-trade process – from trade affirmation to atomic, PvP settlement.

Every transactional workflow is securely captured and hashed, delivering the clarity, trust, and confidence that financial institutions demand.

Unmatched Flexibility and Choice

Decide whether to net or split cross-border settlements, pre-schedule settlement times with counterparties, and complete PvP transactions in just minutes. Decide where you want to settle and your preferred settlement asset. 

Achieve faster, seamless, and risk-free settlements without the need for an intermediary or unnecessary delays.

Scalable and Interoperable DLT

Providing a scalable and interoperable infrastructure, Baton’s Shared Permissioned-Ledger technology is empowering networks that can easily integrate with providers and extend settlement opportunities across fiat and digital currencies.

Built for resiliency and optimised to support the high-throughput demands of leading financial institutions, the technology is designed to run seamlessly on industry-standard hardware in the cloud.

Increase settlement capacity

Increase revenues by reducing settlement risk, maximising netting to optimise liquidity usage, and improving settlement line efficiency.

With the automated capabilities to execute these strategies with ease, institutions can optimise capital usage with funds that would otherwise be tied-up in buffers, expand their risk capacity, and explore new client and business opportunities.

BATON’SAWARD-WINNINGCORE-FX TECHNOLOGY

We are proud to be recognised as a leading industry innovator.

Baton Systems Award
Baton Systems Award
Baton Systems Award
Baton Systems Award

Liquidity Optimisation Made Simple

Traditional FX PvP settlement processes tie up valuable liquidity for hours, creating funding and liquidity challenges. Through our partnership with OSTTRA, our DLT-powered PvP process enables settlement participants to:
  • Execute PvP settlements in a matter of minutes, at the times that suit the settlement participants.
  • Align settlements seamlessly with funding and liquidity cycles across global markets and time zones.
  • Introduce unprecedented efficiency by dynamically netting and splitting to minimise funding requirements. 
  • Settle without pre-funding – freeing up working capital to focus on business priorities.

Empower your institution to leverage its liquidity smarter and more strategically.

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Compliance with FX Settlement Risk and Intraday Liquidity Management Requirements

Here are just some examples of the multiple recent regulatory initiatives Baton’s technology can help firm’s to address: 

  • Jan 2025: Updated FX Global Code

    Updates to Principles 35 and 50 emphasise FX settlement risk mitigation practices promoting PvP settlement and increased netting.

  • Nov 2024: ECB on Intraday Liquidity Risk

    European Central Bank (ECB) published a series of sound practices for managing intraday liquidity risk. Discover how Baton simplifies ECB intraday liquidity compliance: Read the white paper.

  • May 2023: ECB Supervision Newsletter

    ECB highlighted the importance of settling FX transactions using PvP to eliminate principal risk.

  • Mar 2023: BIS CPMI’s PVP Report

    Bank for International Settlements’ Committee on Payments and Market Infrastructures (CPMI) published a report on “Facilitating increased adoption of payment versus payment (PvP)”

How Baton’s technology supports the FX Global Code

Learn more about how our technology offers practical, scalable solutions to help institutions effectively manage and control FX settlement risk

Adapting to the Updated FX Global Code: Strategies for Reducing FX Settlement Risk

Take Control of FX Settlement Today

Say goodbye to manual netting, operationally intensive payment splitting processes and slow settlement cycles, and join the financial institutions trusting Baton’s technology to power their FX post-trade operations. Whether you’re looking for greater flexibility in settling FX transactions, reducing settlement risk and operational complexity, optimising liquidity, or achieving unparalleled transparency, Baton has you covered.

It’s time to transform your FX operations with speed, real-time visibility and control. 

Book Your Demo Today

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Latest Announcements:

OSTTRA and Baton Systems partner to launch FX PvP service, mitigating settlement risk in FX markets
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Baton Systems Triumphs Again, Winning "Best FX Settlement Innovation" at Euromoney Foreign Exchange Awards 2023
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Baton Systems’ DLT Now Risklessly Settling Offshore Yuan Transactions in World First
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Baton Systems wins “Best Settlement Initiative” at the FX Markets e-FX Awards for the second year running
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Learn about Baton's CORE solutions for FX Settlement, Liquidity and Collateral Management

Real-time Payment and Settlement Control            

Reduce funding costs, counterparty and payment risk with real-time payment intelligence and enterprise-wide payment control

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Real-time Intraday Liquidity Management

Optimise intraday liquidity use, increase financial resiliency and reduce intraday funding costs with real-time visibility, traceability and control

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Automated and Optimised Collateral Management      

Increase efficiencies, optimise allocations and expedite asset movements across major venues                                                                      

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