The collaboration, which went live with its first CCP in November, plans to expand across Baton’s extensive CCP network. This network includes 13 major CCPs across EMEA, North America, and Asia, covering over 94% of cleared margin posted by U.S. registered FCMs.
Baton Systems, the leading fintech in post-trade processing digitization powered by distributed ledger technology, has announced a collaboration with J.P. Morgan’s Collateral Services team.
This partnership focuses on enabling tri-party clients to automate collateral optimization in response to margin calls at various CCPs globally. Baton’s innovative Core-Collateral solution is now integrated with J.P. Morgan’s CCP Margin Exchange (CCPMx).
Allowing clearing members to most efficiently meet their CCP margin requirements
Graham Gooden, EMEA Head of Triparty Collateral Management at J.P. Morgan, said: “We’re delighted to help clients find increased efficiencies through improved collateral mobilization in the clearing process.” This initiative highlights a significant step in enhancing collateral management processes in the financial industry.
Arjun Jayaram, Founder and CEO of Baton Systems, added: “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, 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.”
Covering over 94% of cleared margin posted by U.S. registered FCMs
The collaboration, which went live with its first CCP in November, plans to expand across Baton’s extensive CCP network. This network includes 13 major CCPs across EMEA, North America, and Asia, covering over 94% of cleared margin posted by U.S. registered FCMs. This wide coverage exemplifies the potential reach and impact of the initiative.
In the current economic climate, where higher interest rates challenge derivative market participants, the need for optimal collateral composition to meet margin obligations is crucial. However, the process is often hindered by siloed data and manual collateral management processes. These challenges make selecting and mobilizing the most advantageous assets a complex and labor-intensive task.
Baton Systems is addressing this issue by enabling tri-party clients to aggregate all available collateral into a single longbox. This integration allows for the automatic selection of cost-effective securities and rapid mobilization of assets. Such advancements are revolutionizing the efficiency of collateral management, enabling more effective funding decisions, and reducing operational risk.
Baton Systems plans to further extend its CCP connectivity globally, with additional CCPs expected to join in the new year. This expansion signifies Baton’s commitment to enhancing the efficiency and scope of its services in the financial sector.
