Asset movements executed in the first 10 months of 2024 using Baton’s Core-Collateral solution exceed $3.3 trillion – an almost 50% increase on the same period for 2023. 

14th November 2024 – Baton Systems, a leading provider of innovative post-trade and collateral management technology solutions for capital market firms, has reported that the value of client asset movements instructed using its Core-Collateral® solution has reached a record high. By the end of October 2024, over $3.3 trillion in cash and securities had been mobilised through the platform year to date — a nearly 50% increase compared to the same period in 2023 and more than double the value of asset movements recorded between January and October 2022.

Baton’s Core-Collateral solution allows financial institutions to manage collateral in real time across a network of central counterparties (CCPs), custodians, and nostro accounts. The unprecedented growth in the value of asset movements executed using the platform comes as the financial industry continues to face periods of market volatility – with the value of assets mobilised surging to an all-time high in the wake of the August equities sell-off. When a bout of pronounced market turbulence strikes, leveraging real-time balances to optimise collateral allocations and execute bulk cash and collateral movements efficiently across multiple venues enables banks to respond to changing market conditions with agility.

“We’re seeing a clear shift in the way banks manage their collateral,” commented Arjun Jayaram, Founder and CEO of Baton Systems, adding, “The explosive growth witnessed in the value of asset movements highlights the benefits of replacing manual processes with real-time, intelligent, automated solutions. With Core-Collateral, firms can optimise and activate funding decisions faster, with full visibility and automated control over their entire collateral universe.”

Baton’s Core-Collateral solution is now used by five of the top 10 futures commission merchants (FCMs) by total funds held, further validating the platform’s role as a critical tool for large, global financial institutions.

Click here for more information about Baton Systems’ Core-Collateral solution.

Baton’s new tools help banks meet prudential intraday liquidity obligations and reduce intraday liquidity buffers, costing many firms hundreds of millions of dollars annually, by optimising liquidity management processes and capital returns 

20th August 2024 – Baton Systems, a global capital markets tech provider orchestrating the optimised settlement of $20-30 billion (USD) in asset value daily, has introduced new treasury management tools designed to optimise intraday liquidity, reduce costly buffers and mitigate risk in real-time. The new liquidity management capabilities offer firms a means to dramatically reduce their financing costs which have been elevated by interest rate normalisation. These tools also provide a future-proofing way to address the heightened regulatory focus on financial resilience following 2023’s tumultuous market events. 

Lacking real-time information, an understanding of past liquidity behaviour, and the ability to control the release of individual payments effectively, treasury teams have until now struggled to accurately predict and optimise intraday liquidity use. As a result, they have been unable to effectively identify and repurpose available cash and securities, plan for intraday liquidity demands or accurately track intraday financial health. These factors have restricted their ability to test and implement strategies to reduce funding needs, divert available liquidity towards revenue-generating activities and proactively mitigate liquidity risk. 

The launch of these tools comes as the industry continues to assess performance through the recent global equity market sell-off and to explore how liquidity resilience can be better managed during future periods of volatility. During such events, banks need immediate access to critical data detailing current balances, exposures, and obligations and the ability to act quickly on this insight, underscoring the necessity for strong intraday liquidity management tools.

Baton’s new tools provide treasury managers with a dedicated dashboard with real-time insight into how individual counterparties are impacting liquidity across all business lines. By providing real-time firm-wide visibility and control across all available liquidity sources, these tools enhance forecasting, allow for more informed decision-making and the swift adjustment of liquidity strategies. 

Treasury managers can instantly access critical real-time data to proactively adjust capital allocations and rapidly reactivate available capital. Furthermore, they can analyse individual liquidity flows and trace contributing factors to better understand how different events impact their own liquidity profiles and those of their counterparties.

By integrating real-time data with historical models, this insight can be used to automatically adjust and optimise payment strategies as the day’s events unfold and to instantly detect deviations in market or counterparty client behaviour, highlighting a potential credit crunch or liquidity issues. 

Using counterparty-specific historical data, treasury managers can also predict the timing of inbound payments and intraday liquidity demands. The tools will then recommend how outbound payments can be optimally and intelligently sequenced and scheduled to lower funding costs. Additionally, the tools include stress testing capabilities, allowing treasury managers to evaluate the impact of different scenarios on liquidity and ensure counterparty and throughput obligations are met even in the most challenging conditions. 

Arjun Jayaram, Founder and CEO of Baton Systems, highlighted the importance of these new tools: “Recent market events underscore the urgency for a significant shift towards real-time treasury management. With regulators more focused than ever on financial resilience, we’ve designed these tools to enable treasury managers to develop more robust liquidity strategies, to easily access the critical information needed to make informed decisions fast and rapidly adjust strategies to effectively respond to and proactively optimise resources as market conditions change.”

This new functionality, available now, integrates seamlessly with Baton’s Core-Payments® solution – allowing Baton’s clients to transform how they manage intraday liquidity with the flexibility to configure the tools to meet their firm’s specific requirements.

Clearing Members at the Japanese Securities Clearing Corporation can now view End of Day and Intraday balances, automate movement of collateral, and optimise their processes

July 23th 2024, London – Baton Systems (“Baton”), the global fintech digitally transforming post-trade processing, announced today it has completed bi-directional integration with the Japanese Securities Clearing Corporation (JSCC) through its Baton Core-Collateral® ecosystem.

With JSCC joining the Baton Core-Collateral network, JSCC’s Clearing Member clients using the Core-Collateral platform will be able to directly access the largest CCP in APAC. This addition complements the already integrated SGX, expanding the network of APAC CCPs accessible through Baton. This direct connectivity ensures clearing members receive normalised data from Baton directly from the CCP, bypassing the need to receive files through their clearing members. This enhances efficiency and enables the clearing member to receive real-time balances with the ability to check eligibility and then to instruct and move cash and non-cash collateral to JSCC.

Baton’s Core-Collateral clients can now automate and expedite the movement of cash and securities across thirteen CCPs, including the largest nine, covering 95% of global initial margin according to Public Quantitative Disclosures (PQDs) data. They can do this through a single platform that also consolidates and normalises real-time updates regarding required margin, sources of collateral, and eligibility profiles.

Additionally, Baton is integrating collateral eligibility data for JSCC into its Baton eligibility Application Programming Interface (API). This API enables automated, real-time determination of which assets can be used as collateral, streamlining the collateral management process for users and ensuring compliance with CCP requirements.

The Baton Core-Collateral solution helps firms overcome the operational burden of manually-intensive and time-consuming practices. Firms can automate end-to-end collateral workflows, providing intraday visibility of current margin obligations and collateral holdings, to enable improved decision-making. Users also have the ability to instruct cash and security movements across multiple venues via a single interface. As a result, firms can increase the financial and operational efficiency of their collateral management processes, improve net interest income (NII) and reduce associated risks.

Tucker Dona, Head of Business Development and Client Success at Baton Systems, said: “The addition of JSCC to the Baton Core-Collateral ecosystem is a big step to increasing access to the most strategically important CCPs for our clients. As a result, we are able to assist more FCMs and Clearing Members globally to automate and optimise a significant proportion of their collateral holdings. This is incredibly important in helping these firms reduce dependency on manual processes and optimise collateral management at a time when market volatility and a higher interest rate environment place growing pressure on the margin posting process.”

Yasuhiko Tamura, Executive Officer of OTC Derivatives Clearing Services at JSCC said: “We are delighted to work with Baton Systems on this collaboration. This will provide our Clearing Members with greater post-trade operational efficiency, through Baton’s ability to provide real-time intraday balances and an enhanced methodology of moving collateral.”

Baton addresses the most critical risk, capital and liquidity issues impacting post-trade today. Having handled more than 110 million transactions, several of the world’s largest banks are now using the firm’s technology, which has facilitated the settlement of more than $16.2 trillion of cash and securities to date.

拡大を続けるBaton SystemsのCCPネットワークにJSCCを追加

日本証券クリアリング機構（JSCC）の清算参加者におかれましても、日中担保残高や所要額の過不足状況を確認し、担保移動を自動化することでオペレーションを最適化できるようになります。

2024年7月23日、ロンドン – ポストトレード業務のデジタル化を進める世界的なフィンテック企業であるBaton Systems（Baton）は、自社のBaton Core-Collateral ®™エコシステムのネットワークとJSCCが双方向統合を完了したことを発表しました。

Baton Core-Collateral™のCCPネットワークにJSCCが参画したことにより、BatonのCore-Collateralプラットフォームの利用者は、APAC最大の中央清算機関（CCP）に直接アクセスすることが可能となります。これは、既に接続されているSGXに加え、Batonを介してアクセス可能なAPACのCCPネットワークをさらに拡大させるものです。 この接続により、清算参加者は、標準化されたCCPのデータをBatonから直接受領することで、担保預託状況等をリアルタイムで把握することができ、担保移動の効率性を向上させることができます。　

Baton Core-Collateralのユーザーは、13のCCPにおいて、現金担保と有価証券担保の移動を素早く、かつ自動的に行うことができます。これには、定量開示（Public Quantitative Disclosures, PQDs）のデータが示す、グローバルにおける当初証拠金の95%を保有する9つのCCPを含みます。ユーザーは、所要額、担保種類、及び適格担保に関するリアルタイム情報をもとに、統合・標準化された1つのプラットフォームを通じ、オペレーションを行うことができます。

さらに、Batonは、JSCCにおける適格担保データを自社のAPIに統合しているため、どの資産が担保として使用可能かを、リアルタイムで自動的に判断できます。これにより、ユーザーの担保管理プロセスが効率化され、CCPの適格担保要件に準拠することが保証されます。

Baton Core-Collateral™は、煩雑で手間のかかる事務負担の解消に寄与します。最新の所要額や担保保有状況に関する可視性を提供することで、担保指図の最適化が図られ、エンド・ツー・エンドの担保ワークフローの自動化が可能となるのです。また、ユーザーは、単一のインターフェイスにより、現金担保や有価証券担保の移動を、横断的に指示できるようになります。その結果、担保管理プロセスにおける資本効率及び業務効率が向上し、資金利益(NII)の増大と、関連したリスクの低減が期待できます。

Baton SystemsでBusiness Development and Client Successの責任者を務めるTucker Donaは、次のように述べています。

「JSCCがBaton Core-Collateral™のエコシステムに加わったことは、当社のお客さまにとって戦略面で最も重要なCCPへのアクセスを拡大する大きな1歩です。これにより、全世界のより多くのFCMや清算参加者において、担保管理の大部分を自動化、最適化できるようになります。これは、市場のボラティリティや金利の上昇によって、担保管理プロセスへのプレッシャーが増大する中で、企業がマニュアル・プロセスから脱却し、担保管理を最適化していく上で非常に重要なことです。」

JSCCでOTCデリバティブ清算担当の執行役員を務める田村 康彦氏は、次のように述べています。
「この度、Baton社と協働できたことを大変うれしく思います。Baton社の、リアルタイムに提供される日中担保残高情報と高度な担保移動手法によって、清算参加者におけるポストトレード業務が大幅に効率化されることを確信しています。」

Batonは、昨今のポストトレード処理に影響を与える最も重大なリスクをはじめ、資本や流動性の課題に取り組んでいます。当社はこれまで1億1,000万件超の処理を取り扱ってきました。世界の大手銀行複数社が当社のテクノロジーを利用しており、これまでに16.2兆米ドルを超える現金と有価証券の決済が行われています。

19th January 2023, London – Baton Systems (“Baton”), the global fintech digitally transforming post-trade processing using distributed ledger technology (DLT), has announced the appointment of Ravindra Madduri as Global Head of Product.  

Ravi brings a wealth of experience in the Payments and Cash Management space to Baton, with the bulk of his career spent in product functions at leading corporate banks such as Citi, ABN AMRO, RBS and Barclays. He joins from fintech Paysend, where he previously served as Head of Enterprise B2B Products.  

Reporting to Baton’s CEO, Arjun Jayaram, Ravi will be based in London, with an immediate focus on ensuring that overall product strategy is aligned with client requirements and the overall growth trajectory of Baton Systems.  

Ravi will be involved with all aspects of the product lifecycle, including product management, delivery, and design management. He will be immediately taking responsibility across the suite of products for execution and implementation, ensuring that product development and maintenance are closely aligned with client needs. 

Arjun Jayaram, CEO of Baton Systems, said: “We are thrilled to announce the appointment of Ravi as our Head of Product. With over two decades of experience in building products, Ravi has a proven track record of delivering reliable and high-quality products for large banks and corporations.

“His expertise will be a valuable asset to our team as we continue to innovate and improve our industrial-grade, complex, and highly reliable and secure payments product on top of DLT, which moves tens of billions of assets value every day quickly, efficiently, and with lower risk. With Ravi’s leadership and strategic vision, we are well-positioned to scale our product offering to nearly a thousand clients over the next few years and meet the growing market demand in a rising interest rate environment.“

Commenting on his appointment, Ravindra Madduri commented: “After a year defined by increased funding costs due to the effects of high volatility on margin requirements, as well as rising settlement risk in the FX space, the need for market participants to be dynamic in the way that they react to these developments is significant. Baton is completely changing the landscape for post-trade processing, and due to their unique approach, they are perfectly positioned to help financial institutions tackle these challenges head on.”

“The massive interest from the market in Baton’s solutions was one of the key drivers that made this move such an attractive proposition. I’m incredibly excited to get to work with Arjun and the wider Baton Systems team to support financial institutions to adapt to the trading conditions of 2023 and beyond.” 

Ravi’s appointment comes as Baton continues to focus on bringing greater efficiency and reducing risk in key post-trade processes such as collateral management, FX settlement, and payments.