Baton partners with J.P. Morgan for collateral management optimisation solution
20 December 2023 US
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Baton’s Core-Collateral® solution has been integrated into J.P. Morgan’s CCP Margin Exchange (CCPMx) in an effort to enable tri-party clients to automate the optimisation of collateral to meet margin calls at a range of central counterparties (CCPs) globally.
The firms aim to roll out the solution across Baton’s CCP network. The network currently includes 13 major CCPs across EMEA, North America and Asia together comprising more than 94 per cent of cleared margin posted by US registered futures commission merchants.
Tri-party clients can now aggregate all available collateral across their various sources into a single longbox, automatically select the most cost-effective securities and rapidly mobilise all assets, the companies say. This improves the efficiency of the collateral management process, they add, allowing more effective funding decisions to be made and reducing operational risk.
Graham Gooden, EMEA head of triparty collateral management at J.P. Morgan says: “We’re delighted to help clients find increased efficiencies through improved collateral mobilisation in the clearing process.”
Arjun Jayaram, founder and co executive officer atBaton Systems comments: “We’re proud to be collaborating with J.P. Morgan to allow clearing members to most efficiently meet their CCP margin requirements. Through this partnership we are able to extend the economic value our Core-Collateral offering can bring to additional market participants, which is proving increasingly important given the current environment.”
The firms aim to roll out the solution across Baton’s CCP network. The network currently includes 13 major CCPs across EMEA, North America and Asia together comprising more than 94 per cent of cleared margin posted by US registered futures commission merchants.
Tri-party clients can now aggregate all available collateral across their various sources into a single longbox, automatically select the most cost-effective securities and rapidly mobilise all assets, the companies say. This improves the efficiency of the collateral management process, they add, allowing more effective funding decisions to be made and reducing operational risk.
Graham Gooden, EMEA head of triparty collateral management at J.P. Morgan says: “We’re delighted to help clients find increased efficiencies through improved collateral mobilisation in the clearing process.”
Arjun Jayaram, founder and co executive officer atBaton Systems comments: “We’re proud to be collaborating with J.P. Morgan to allow clearing members to most efficiently meet their CCP margin requirements. Through this partnership we are able to extend the economic value our Core-Collateral offering can bring to additional market participants, which is proving increasingly important given the current environment.”
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