Baton Systems (“Baton”), the market solution transforming asset movements and settlements, today became a signatory to the updated FX Global Code, underscoring its commitment and support to firms keen to eliminate settlement risk by enabling real time, payment-versus-payment (PvP) settlement for all market participants.
Principle 35 of the updated FX Global Code strengthens previous guidance, advising “Market Participants should reduce their Settlement Risk as much as practicable, including by settling FX transactions through services that provide PVP settlement where available.”
Baton allows all market participants to reduce settlement risk, by providing on demand PvP settlement for real assets, in real accounts held at commercial banks. Since the solution was initially deployed, Baton has facilitated the PvP settlement of trillions of dollars.
Baton’s transformative PvP solution utilises secure distributed ledger technology (DLT), deployed through the cloud using a single tenant architecture, without the need for tokenisation. Backed by a robust rulebook, Baton currently facilitates PvP settlement in 18 currencies across a spectrum of G10 and EM currencies. In addition, Baton provides participants with the flexibility to settle when it best suits their funding profile, with access to real time netting and payment strategies. Delivering transparency, auditability and configurable automated workflows, Baton is opening up the benefits of PvP settlement protection to all.
Arjun Jayaram, CEO and Founder of Baton Systems commented “The world of clearing and settlement is on the threshold of revolutionary change. We see the updated FX Global Code as validation that today’s status quo for settlement risk and liquidity management must evolve. There is a clear need for safer and more robust settlement protocols for all currencies and all market participants.”
