Baton Systems connects LCH SA to its collateral network
17 May 2022 France
Image: AdobeStock/ peshkova
Baton Systems has connected LCH SA to its collateral network.
The California-based post-trade fintech indicates LCH’s Paris-based clearing house has become the latest clearing entity to link to the Baton Core-Collateral ecosystem, partnering in the first instance to support trade flow cleared through CDSClear, the CCP's credit default swap clearing service.
Baton’s Core-Collateral solution is designed to support automated end-to-end collateral workflow for cleared derivatives, extending intraday visibility around their current margin obligations and collateral holdings and enabling users to instruct multiple security and cash movements through a single interface.
Utilising distributed ledger technology to support its efforts to improve post-trade efficiency, Baton indicates that it has facilitated settlement of more than 15 million transactions over the past 12 months. It says that it has now orchestrated settlement of more than US$7.1 trillion of cash and securities in total, with several of the world’s largest banks now using its technology.
LCH SA global head of CDS Clear Frank Soussan says: “We are pleased to have connected to Baton, working together to help clearing members to 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.”
Tucker Dona, head of business development and client success at Baton Systems, adds: “We are focused on ensuring clearing members can automate and optimise as large a proportion of the collateral holdings as possible, because this has real implications for 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. Connecting to LCH SA [increases] access to the group of CCPs of greatest strategic importance to our clients.”
The California-based post-trade fintech indicates LCH’s Paris-based clearing house has become the latest clearing entity to link to the Baton Core-Collateral ecosystem, partnering in the first instance to support trade flow cleared through CDSClear, the CCP's credit default swap clearing service.
Baton’s Core-Collateral solution is designed to support automated end-to-end collateral workflow for cleared derivatives, extending intraday visibility around their current margin obligations and collateral holdings and enabling users to instruct multiple security and cash movements through a single interface.
Utilising distributed ledger technology to support its efforts to improve post-trade efficiency, Baton indicates that it has facilitated settlement of more than 15 million transactions over the past 12 months. It says that it has now orchestrated settlement of more than US$7.1 trillion of cash and securities in total, with several of the world’s largest banks now using its technology.
LCH SA global head of CDS Clear Frank Soussan says: “We are pleased to have connected to Baton, working together to help clearing members to 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.”
Tucker Dona, head of business development and client success at Baton Systems, adds: “We are focused on ensuring clearing members can automate and optimise as large a proportion of the collateral holdings as possible, because this has real implications for 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. Connecting to LCH SA [increases] access to the group of CCPs of greatest strategic importance to our clients.”
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