Meet the ECB’s Intraday Liquidity Expectations with Real-Time Control
Reduce your funding costs with the same capabilities that address the ECB’s Sound Practices for Managing Intraday Liquidity Risk.
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.
Baton enables treasury teams to meet 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.
Five Interoperable Modules. One Real-Time Intraday Liquidity Control Layer
Baton’s intraday liquidity management modules support the practical capabilities banks need to meet the ECB’s 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 framework gap, or combined as a unified control layer connecting balance visibility, forecasting and governed payment release in one continuous cycle.
Speak with a
Baton Intraday Liquidity Specialist
Tell us where your ECB framework gaps are.
We’ll show you how to close them.
Capabilities Supporting Multiple Requirements Across All 7 ECB Principles
Balance Manager . Exposure Manager . Alerts Manager . Precision Forecasting . Active Outflow Management
Baton delivers supporting capabilities across all seven of the ECB’s Sound Practices for Managing Intraday Liquidity Risk. Principles 3, 4 and 5 are where most institutions identify their most pressing gaps. Here’s how Baton supports each one:
ECB Principle 3: Forecasting Intraday Liquidity Needs
Institutions are expected to project intraday, end-of-day and next-day liquidity needs – based on forthcoming payments, their priorities and associated timing – with projections updated throughout the day.
Baton’s Precision Forecasting addresses this directly. It continuously recalibrates projections using live balances, in-flight payment data and historical counterparty settlement behaviour.
Key Capabilities:
- 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: 30-120 minute projections using probability-weighted timing windows, enabling treasury to anticipate when inbound payments are likely to arrive, not just whether they will.
Benefit: Proactive management of LNNCP, reduce peak funding requirements and lower reliance on intraday credit and pre-funding.
ECB Principle 4: Real-time Monitoring of Intraday Liquidity
Institutions are expected to monitor payment flows in material currencies in real time, with alerts and tools to promptly identify unexpected intraday liquidity needs and monitor the adequacy of available 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.
Key Capabilities:
- 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; full audit trail from trigger to closure.
Benefit: Prompt identification of unexpected intraday needs. Shared situational awareness across every team responsible for acting on them.
ECB Principle 5: Active Management of Outflows
Institutions are expected to actively manage outflows to ensure time-specific payments are made on time, with other payments duly prioritised within available liquidity under BAU and stressed conditions.
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.
Key Capabilities:
- Outflow ladder: TSOs and other priority obligations organised explicitly with configurable prioritisation, sequencing and throttling applied in real-time against defined rules.
- Conditional release: payment instructions released based on time or liquidity conditions; all payments due made within the day.
- BAU and stress controls: cash operations manage payments within defined liquidity levels; treasury and risk alerted before buffers are exhausted.
- Human oversight: every release decision is transparent, auditable and subject to human override.
Benefit: Controlled, auditable settlement behaviour under BAU and stressed conditions. Governed payment prioritisation reduces peak funding usage and lowers the cost of intraday liquidity.
Learn more about Baton’s support for ECB Principles 3, 4 and 5
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 that only shared, connected infrastructure can produce.
Collaborate with network participants to agree netting sets or payment splitting and safely settle transactions on-demand via PvP or DvP across a shared, real-time data foundation. This same shared data foundation provides the architecture on which banks can build their own AI capabilities for forecasting, anomaly detection and adaptive liquidity management, using operational data they own.
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 enable institutions to reduce LNNCP. A real-time consolidated view across positions makes available liquidity visible so it can then be moved to where it’s needed to reduce intraday buffers.
One implementation . One business case
Baton has Facilitated Settlements of More than $25 Trillion to Date
If you have identified gaps against the ECB’s Sound Practices for Managing Intraday Liquidity Risk, speak to Baton.
We work with institutions at every stage: from initial gap closure to active liquidity optimisation and network participation. Let us show you how to close your gaps, reduce your funding costs, and build the platform that grows with you.
Frequently Asked Questions
Q: How does Baton support the ECB’s Sound Practices for Managing Intraday Liquidity Risk?
A: 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.
Q. How quickly can Baton be deployed at a Tier 2 or Tier 3 bank?
A: Balance Manager can be live across priority accounts in weeks. No core system replacement. No operating model redesign. More comprehensive deployments deliver initial production value within three months.
Q: Does closing ECB framework gaps deliver a commercial return?
A: 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.
Q: How does Baton integrate with existing systems?
A: Baton’s Integration Manager allows for quick ad reliable connections to existing treasury, payments and risk systems via REST APIs, ISO 20022, SWIFT MT/MX and FIX. No bespoke development. New data end–points, currencies, entities and counterparties are added through configuration, not re-engineering.