Meet ECB liquidity expectations with real‑time control
Turn intraday liquidity compliance into a funding advantage
The ECB's Sound Practices for Managing Intraday Liquidity Risk raise the bar for how banks manage intraday liquidity risk, moving the requirement from monitoring and reporting to active, demonstrable control. Baton enables treasury teams to close the gaps against those expectations with the same real‑time capabilities that also strengthen settlement control, reduce peak funding requirements, improve capital efficiency and open the door to emerging intraday markets.
- $29T+in settlements facilitated by Baton to date
- 7ECB Sound Practices with supporting Baton capabilities
- 5interoperable modules, each deployable on its own
Five interoperable modules: deploy the one that closes your gap
Baton’s intraday liquidity management modules support the practical capabilities banks need to meet the ECB’s intraday liquidity expectations: real‑time balance visibility, exposure monitoring, configurable alerts, precision forecasting and active outflow control.
Each interoperable module can be deployed independently to address a specific ECB liquidity framework gap, or combined as a unified control layer connecting balance visibility, forecasting and governed payment release in one continuous cycle.
One shared, real‑time data foundation
Capabilities supporting multiple requirements across all 7 ECB principles
Balance ManagerExposure ManagerAlerts ManagerPrecision ForecastingActive Outflow Management
Baton delivers supporting capabilities across all seven of the ECB’s Sound Practices for Managing Intraday Liquidity Risk, which build on the BCBS 248 framework institutions already report against. Principles 3, 4 and 5 are where most institutions identify their most pressing gaps. Here’s how Baton supports each one:
- Risk management framework
- Governance
- Precision forecastingPrinciple 3
- Real-time, firm-wide monitoringPrinciple 4
- Smart, controlled outflowsPrinciple 5
- Visibility across all liquidity sources
- Extensive stress testing
ECB Principle 3
Forecasting intraday liquidity needs
Baton’s Precision Forecasting addresses this directly. It continuously recalibrates projections using live balances, in‑flight payment data and historical counterparty settlement behaviour.
Discover Baton’s Precision Forecasting for liquidity management
- TSO and TSP identification
Mandatory obligations and time‑sensitive payments embedded into forecasts with expected settlement timing, so priority outflows don’t compete with discretionary release.
- Largest Negative Net Cumulative Position (LNNCP) management
Projections updated throughout the day; unanticipated needs surfaced before they create funding pressure.
- Short‑horizon forecasting
Configurable, probability‑weighted timing windows, including the ECB‑recommended 30 to 120 minute projections, enabling treasury to anticipate when inbound payments are likely to arrive, not just whether they will.
The benefit: proactive management of LNNCP, reduce peak funding requirements and lower reliance on intraday credit and pre‑funding.
Discuss your forecasting gapsECB Principle 4
Real‑time monitoring of intraday liquidity
Baton’s Monitoring and Alerting capabilities directly address this need. When deployed together, Balance Manager and Exposure Manager deliver a single, near real‑time view of cash balances, margin requirements and collateral on deposit across nostro, CCP and carry broker accounts, across currencies and legal entities. Full visibility of EUR positions sits at the core, with other material currencies added to match each institution’s requirements.
- Consolidated position view
Across balances, collateral and credit lines from one shared data foundation.
- Real‑time payment monitoring
Settlement status updated live across RTGS systems, correspondent banks and FMIs.
- Role‑specific dashboards
Treasury, back office and risk control teams each see what is relevant to them.
- Alerts and escalation
When predefined conditions are met, first line of defence (1LoD) and second line of defence (2LoD) teams are automatically alerted, with a full audit trail from trigger to closure.
The benefit: prompt identification of unexpected intraday needs. Shared situational awareness across every team responsible for acting on them.
Discuss your monitoring gapsECB Principle 5
Active management of outflows
Baton’s Active Outflow Management addresses this directly. Dynamic payment release controls automatically sequence outgoing payments based on defined priority levels and available funds, adjusting in real time as balances and projections change. TSOs and TSPs are embedded in the outflow ladder and clearly distinguished from discretionary payments.
- Outflow ladder
TSOs and other priority obligations organised explicitly, with prioritisation, sequencing and throttling configured for each priority class and applied in real time against defined rules.
- Conditional release
Payment instructions released based on time or liquidity conditions, with all payments due made within the day.
- BAU and stress controls
Cash operations manage payments within defined liquidity levels, and treasury and risk are alerted before buffers are exhausted.
- Human oversight
Every release decision is transparent, auditable and subject to human override.
The benefit: controlled, auditable settlement behaviour under BAU and stressed conditions. Governed payment prioritisation reduces peak funding usage, cuts fees from uncontrolled release and lowers the cost of intraday liquidity.
Discuss your outflow gapsLearn more about Baton’s support for ECB Principles 3, 4 and 5
Close ECB gaps. Reduce peak funding requirements. Release trapped capital.
The capabilities that satisfy ECB Principles 3, 4 and 5 are the same capabilities that reduce peak funding usage and improve capital efficiency. Dynamic payment sequencing and throttling reduce LNNCP. A real‑time consolidated view across positions makes available liquidity visible, so it can be moved to where it's needed and intraday buffers can come down.
One implementation. One business case.
Every deployment is an entry point onto Baton's live operational network
On that network, institutions access coordinated, controlled settlement, liquidity efficiencies and the ability to collaborate in ways only shared, connected infrastructure can produce.
Agree netting sets or payment splitting with network participants, and settle transactions on demand via PvP or DvP across a shared, real‑time data foundation. The same foundation is the architecture on which banks can build their own AI for forecasting, anomaly detection and adaptive liquidity management, using operational data they own.
Frequently asked questions
How does Baton support the ECB's Sound Practices for Managing Intraday Liquidity Risk?
Baton’s five interoperable modules deliver supporting capability across all seven of the ECB’s Sound Practices for Managing Intraday Liquidity Risk. Each module deploys independently to close a specific gap, or together as a complete intraday liquidity control layer, with no core system replacement required. Principles 3, 4 and 5 are where most institutions identify their most pressing gaps and where Baton delivers its most comprehensive support.
How quickly can Baton be deployed at a Tier 2 or Tier 3 bank?
Balance Manager can be live across priority accounts in weeks. G.H. Financials, for example, established key account connectivity and visibility within eight weeks, then scaled to more than 100 nostro, CCP and carry broker accounts in 17 currencies. No core system replacement. No operating model redesign. More comprehensive deployments deliver initial production value within three months.
Does closing ECB liquidity framework gaps deliver a commercial return?
The capabilities that address the ECB's Sound Practices – forecasting, monitoring and active outflow management – are the same capabilities that reduce peak funding requirements and improve capital efficiency. The regulatory case and the commercial case are the same argument.
How does Baton integrate with existing systems?
Baton's Integration Manager reduces data integration timelines by up to 90%, with quick and reliable connections to existing treasury, payments and risk systems via REST APIs, ISO 20022, SWIFT MT/MX and FIX. No bespoke development. New data endpoints, currencies, entities and counterparties are added through configuration, not re‑engineering.
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