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Baton Systems Expands its CCP Network by Connecting to OCC
Baton Systems, the global fintech digitally transforming post-trade processing using distributed ledger technology (DLT), now provides connectivity to the Options Clearing Corporation (OCC) through the Baton Core-CollateralTM 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 U.S. registered FCMs.
With the continued rise in interest rates, it’s becoming even more important to FCMs that they maximise their non-cash collateral usage. Baton’s Core-Collateral solution enables Clearing Members to automate and optimise 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 minimise 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: “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 optimise an even greater proportion of their collateral under management. We are excited about the opportunities and transformative benefits this presents to our clients.”
Baton addresses the most critical risk, capital and liquidity issues impacting post-trade today. 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.
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