Baton Systems announced that the Options Clearing Corporation (OCC) is connected through the Baton Core-Collateral ecosystem. By expanding connectivity, clearing firms will be able to automate collateral management across 11 major CCPs globally, together comprising more than 93% of margin, placed by US registered FCMs.
With the continued rise in interest rates, it’s becoming even more important to FCMs that they maximize their non-cash collateral usage. Baton’s Core-Collateral solution enables clearing members to automate and optimize their collateral management processes 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.
Helping FCMs to improve both the financial and operational efficiency of their collateral movements for centrally cleared derivatives, they are able to minimize what can otherwise prove to be a massive operational burden, with significant associated risks.
Tucker Dona, head of Business Development and Client Success at Baton Systems, said in a statement: “The need to reduce costs associated with funding and liquidity is becoming increasingly important. 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 optimize an even greater proportion of their collateral under management.”
Baton is a global fintech for post-trade processing, that also uses distributed ledger technology (DLT), in addressing critical risk, capital and liquidity issues. Having handled more than 68 million transactions, several of the world’s largest banks are now using the firm’s technology, which has facilitated the settlement of more than $7.1 trillion of cash and securities to date.