Baton Systems Adds to its CCP Network
Posted by Colin Lambert. Last updated: August 17, 2022
Baton Systems has expanded its network on Baton Core-Collateral by adding connectivity to the Options Clearing Corporation (OCC). This mean clearing firms are able to manage collateral across 11 CCPs globally, which Baton says comprises more than 93% of margin placed by registered US FCMs.
The firm says that the continued rise in interest rates means it is even more important to FCMs that they maximise their non-cash collateral usage and that its Core-Collateral solution enables clearing members to automate and optimise their collateral management processes. It does this by providing intraday visibility of current margin obligations and collateral holdings at the CCPs that prove to be of greatest strategic importance for their firm.
Baton adds that by helping FCMs to improve both the financial and operational efficiency of their collateral movements for centrally cleared derivatives, these firms are able to minimise what can otherwise prove to be a massive operational burden, with significant associated risks.
“The need to reduce costs associated with funding and liquidity is becoming increasingly important,” says Tucker Dona, head of business development and client success at Baton Systems. “For the FCM community, this translates into ensuring money isn’t being left on the table. Our FCM clients are already using the Baton platform to move tens of billions of dollars of collateral every week. With an additional CCP they now have the opportunity to automate and optimise an even greater proportion of their collateral under management.”