The addition of LCH SA means Clearing Members can now automate and optimise collateral movements across a substantial proportion of their collateral holdings
Baton Systems (“Baton”), the global fintech digitally transforming post-trade processing using distributed ledger technology (DLT), has announced LCH SA as the latest CCP to connect to its Baton Core-Collateral™ ecosystem.
Clearing Members using Baton’s Core-Collateral solution can now automate and optimise collateral holdings and expedite the movement of cash and securities to LCH SA alongside holdings with CCPs including LCH Ltd, CME Clearing, Eurex, ICE Clear Europe, ICE Clear US, ICE Clear Credit, and SGX. Baton and LCH SA have initially partnered for connectivity with the CDSClear service.
With LCH SA joining the fold, Baton’s Clearing Member clients will be able to directly access the expanded network of CCPs, which together hold a substantial share of collateral placed on deposit with the CCP community.
Baton’s Core-Collateral solution enables Clearing Members to overcome the operational burden of manually-intensive and time-consuming practices. The technology allows firms to automate end-to-end collateral workflows for cleared derivatives, to improve decision making by providing intraday visibility of current margin obligations and collateral holdings, and the ability to instruct multiple cash and security movements via a single interface. In doing so, empowering firms to increase the financial and operational efficiency of collateral management processes, to potentially improve net interest income (NII) and reduce associated risks.
This announcement comes as adoption of Baton’s solutions continues to increase. Baton’s systems are designed to address the most critical risk, capital and liquidity issues impacting post-trade today. Having orchestrated the settlement of more than 15 million transactions over the last 12 months, 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.
Tucker Dona, Head of Business Development and Client Success at Baton Systems, said: “We are focused on ensuring Clearing Members can automate and optimise as great a proportion of their collateral holdings as possible, because this has real implications on their bottom line. In doing so, they can take greater control of their collateral under management and better support their clients, achieve higher net interest income and build a more scalable business with reduced dependency on manual processes. I’m delighted we have completed connecting to LCH SA as it increases access to the group of CCPs of greatest strategic importance to our clients.”
Frank Soussan, Global Head of CDS Clear at LCH SA said: “We are pleased to have connected to Baton, working together to help clearing members increase the speed in which collateral movements settle . We look forward to developing our collaboration with Baton further to improve post trade operational efficiency for our members and clients.”