Baton Systems, the global fintech digitally transforming post-trade processing, announced it has completed bi-directional integration with the Japanese Securities Clearing Corporation (JSCC) through its Baton Core-Collateral® ecosystem.

With JSCC joining the Baton Core-Collateral network, JSCC’s Clearing Member clients using the Core-Collateral platform will be able to directly access the largest CCP in APAC. This addition complements the already integrated SGX, expanding the network of APAC CCPs accessible through Baton. This direct connectivity ensures clearing members receive normalised 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 normalises 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.

The Baton Core-Collateral solution helps firms overcome the operational burden of manually-intensive and time-consuming practices. Firms can automate end-to-end collateral workflows, providing intraday visibility of current margin obligations and collateral holdings, to enable improved decision-making. Users also have the ability to instruct cash and security movements across multiple venues via a single interface. As a result, firms can increase the financial and operational efficiency of their collateral management processes, improve net interest income (NII) and reduce associated risks.

Tucker Dona, Head of Business Development and Client Success at Baton Systems, said: “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 optimise a significant proportion of their collateral holdings. This is incredibly important in helping these firms reduce dependency on manual processes and optimise 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: “We are delighted to work with Baton Systems on this collaboration. 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.”

Baton addresses the most critical risk, capital and liquidity issues impacting post-trade today. Having handled more than 110 million transactions, several of the world’s largest banks are now using the firm’s technology, which has facilitated the settlement of more than $16.2 trillion of cash and securities to date.

Source: Baton