Baton Systems has added connectivity to OCC, the Chicago-based clearing house, to its collateral management network.
With this development, clearing firms will be able to automate collateral management across 11 central counterparties (CCPs) globally via the Baton Core-Collateral ecosystem, representing more than 93 per cent of margin placed by US-registered futures clearing members (FCMs) according to the California-headquartered fintech.
Commenting on the link to OCC, Tucker Dona, Baton Systems’ head of business development and client success, says: “The need to reduce costs associated with funding and liquidity is becoming increasingly important. For the FCM community, this translates into ensuring money is not 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 the collateral under management.”
Baton’s Core-Collateral solution aims to enable clearing members to automate and optimise collateral management processes by providing intraday visibility of current margin obligations and collateral holdings at the CCPs that have greatest strategic importance for their firm.