SGX Partners with Baton Systems to Streamline Collateral Workflow
FREMONT, Calif., Oct. 14, 2020 /PRNewswire/ -- Singapore Exchange (SGX), Asia's most international multi-asset exchange and largest FX derivatives marketplace, has integrated with Baton Systems ("Baton"), a provider of post-trade solutions for capital markets, to automate and standardize the end-to-end collateral workflow for its clients.
Baton's platform normalizes and harmonizes data and collateral workflows for all integrated central clearing counterparties (CCPs). As a result, SGX's clients will have access to consolidated intra-day information in a single dashboard, with real-time visibility of margin requirements, a standardized process for pledging and recalling collateral and clear visibility of the progress of asset movements between SGX and themselves.
The resulting end-to-end automation of the collateral workflow process significantly improves operational efficiency. Accurate, real-time data is central to the optimization process.
"We are excited to partner with SGX as we continue broadening our CCP integrations," said Tucker Dona, Head of Business Development and Client Success at Baton Systems. "By expanding the scope of our CCP connectivity, we are enabling greater efficiency across the entire collateral workflow process for all market participants. Our customers and partner CCP's observed during the recent periods of volatility just how important this really is."
The deep integration provided by Baton also means that SGX will benefit from increased efficiency and reduced manual touchpoints when working with its clearing members.
"In today's low interest rate environment coupled with new margin rules for uncleared derivatives (UMR) transactions, collateral optimization is an important focus for clearing members globally, many of whom are SGX's clients," said Alison King, Head of Trading and Clearing Services, Equities at SGX. "As we look to innovate and continuously enhance our clients' trading and clearing experience, we partnered with Baton Systems to offer our clients visibility of intra-day margin data on SGX Titan derivatives and clearing platform, to reduce any friction associated with collateral movements, which is especially crucial in a market with increasing liquidity and activity."
With SGX on-boarded as its first Asian CCP, Baton is extending its network across the region and is in the process of expanding its office in India.
About Baton
Baton Systems is reforming how payments are made in the world's largest financial markets. By delivering on-demand synchronization and orchestration of asset movements through its distributed ledger-based platform, it is liberating balance sheets and eliminating the need for capital-intensive pre-funding of FX and margin requirements. Founded in 2016 by technology, payments and capital markets veterans, and backed by venture capital, Baton Systems works with numerous market participants – including major global banks, custodian banks and exchanges – to meet today's demands for capital efficiency, regulatory compliance and operational superiority. Find out more at www.batonsystems.com.
About Singapore Exchange (SGX)
Singapore Exchange is Asia's leading and trusted market infrastructure, operating equity, fixed income and derivatives markets to the highest regulatory standards. As Asia's most international, multi-asset exchange, SGX provides listing, trading, clearing, settlement, depository and data services, with about 40% of listed companies and over 80% of listed bonds originating outside of Singapore.
SGX is the world's most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN and offers commodities and currency derivatives products. Headquartered in AAA-rated Singapore, SGX is globally recognised for its risk management and clearing capabilities. For more information, please visit www.sgx.com.
Clearing the Final UMR Hurdles – Custodians and Sell-Side Provided Solutions
From DerivSource: Although the next wave of entrants impacted by the Uncleared Margin Rules (UMR) were granted a bit more breathing space to prepare, the challenges of implementing collateral management solutions should not be underestimated. Custodians, vendors and sell-side firms are rolling out solutions to help ease the pain....
JP Morgan, on the other hand, has recently joined forces with Baton Systems to develop a Distributed Ledger Technology (DLT) – based platform that helps automate derivatives margin payments....