Evaluating collateral eligibility automatically, Baton’s new service provides treasury, liquidity, and collateral managers with the transparency and precision needed to make smarter and better-informed decisions, elevating the accuracy of portfolio optimiser recommendations.
19th February 2025 – Baton Systems, a global leader in post-trade, payments, and settlements technology, has unveiled its new Eligibility Service—a collaborative workflow solution designed to streamline and automate the complex task of evaluating asset eligibility across diverse counterparties.
This innovative service improves transparency, minimises risk, and enhances collateral management decision-making by analysing detailed eligibility schedules. With the option to seamlessly integrate the system into optimisation processes, the Eligibility Service enables portfolio recommendations to be grounded in precise and reliable data.
Managing collateral in today’s volatile markets demands both accuracy and speed. Yet, many institutions rely on outdated manual processes to assess collateral eligibility, leading to inefficiency through increased costs and missed opportunities. Baton’s Eligibility Service addresses these challenges by transforming how firms evaluate collateral eligibility in cleared derivatives, bilateral agreements, and triparty arrangements.
By integrating with Baton’s comprehensive API, users benefit from a single normalised source of information covering complex counterparty schedules. Clients can quickly determine counterparty acceptability for cash and non-cash assets and unlock real-time data detailing information such as counterparty haircuts, collateral fees, cross-currency adjustments, and interest rates across venues, accounts, and product types. This insight can be used to identify higher-yielding opportunities often overlooked by manual assessments.
The launch of the Eligibility Service comes as financial institutions increasingly prioritise digitisation and modernised collateral management amid evolving industry demands.
“Our new Eligibility Service introduces a valuable tool for collateral managers focused on enhancing collateral efficiency and reducing risk, offering significant potential in time and capital savings,” said Arjun Jayaram, CEO and Founder at Baton Systems. “It is a modular solution that can be implemented both as part of our wider Core-Collateral ecosystem or separately through its advanced API, that integrates seamlessly into a firm’s proprietary or third-party workflows.”