Baton Systems adds JSCC to its CCP network
24 July 2024 UK
Image: andranik123/stock.adobe.com
The Japanese Securities Clearing Corporation (JSCC) has joined Baton System’s Core-Collateral network.
The bi-directional integration of JSCC aims to enhance efficiency and enable clearing members to receive real-time balances.
According to Baton Systems, clients will have the ability to check eligibility and move cash and non-cash collateral to JSCC.
JSCC’s clearing member clients can now directly access “the largest” central clearing counterparty (CCP) in APAC, where members will receive normalised data from Baton, directly from the CCP.
Baton’s Core-Collateral clients can automate and expedite the movement of cash and securities across 13 CCPs.
Clients can do this through a single platform that also consolidates and normalises real-time updates regarding required margins, sources of collateral, and eligibility profiles.
Additionally, Baton is integrating collateral eligibility data for JSCC into its 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 firm says.
Commenting on the integration, Tucker Dona, head of business development and client success at Baton Systems, says: “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, adds: “This [collaboration] 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.”
The bi-directional integration of JSCC aims to enhance efficiency and enable clearing members to receive real-time balances.
According to Baton Systems, clients will have the ability to check eligibility and move cash and non-cash collateral to JSCC.
JSCC’s clearing member clients can now directly access “the largest” central clearing counterparty (CCP) in APAC, where members will receive normalised data from Baton, directly from the CCP.
Baton’s Core-Collateral clients can automate and expedite the movement of cash and securities across 13 CCPs.
Clients can do this through a single platform that also consolidates and normalises real-time updates regarding required margins, sources of collateral, and eligibility profiles.
Additionally, Baton is integrating collateral eligibility data for JSCC into its 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 firm says.
Commenting on the integration, Tucker Dona, head of business development and client success at Baton Systems, says: “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, adds: “This [collaboration] 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.”
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