Baton Systems announced it has completed bi-directional integration with the Japan Securities Clearing Corporation (JSCC) through the Core-Collateral ecosystem. This addition complements the already integrated Singapore Exchange SGX.
JSCC’s clearing member clients will be able to directly access the largest CCP in APAC and can now view end of day and intraday balances, automate movement of collateral, and optimize their processes.
Direct connectivity ensures clearing members receive normalized 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 normalizes 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.
Tucker Dona, head of Business Development and Client Success at Baton Systems, said in a statement: “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 optimize a significant proportion of their collateral holdings. This is incredibly important in helping these firms reduce dependency on manual processes and optimize 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 in a statement: “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.”