About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

BNY Mellon and Baton Systems Collaborate to Deliver Collateral Optimisation Solution

Subscribe to our newsletter

BNY Mellon and Baton Systems, a post-trade processing provider that uses distributed ledger technology (DLT), have announced a collaboration to integrate Baton’s Core-Collateral solution into BNY Mellon’s collateral management platform. This will enable mutual clients to optimise portfolio allocations and accelerate the mobilisation of cash and securities collateral across both uncleared and cleared margin obligations globally.

Baton’s Core-Collateral solution enables Clearing Members to automate and optimise their collateral management processes by providing intraday visibility of current margin obligations and collateral holdings at chosen Central Clearing Counterparties (CCPs). Earlier this year, Baton expanded the network to include connectivity to the Options Clearing Corporation (OCC).

By bringing together Baton’s established CCP network and BNY Mellon’s Enterprise Continuous Portfolio Optimisation (ECPO) service, the new jointly distributed offering will support clients in reducing funding costs and improving profitability, while increasing the velocity of collateral to better manage risk.

“We’re excited about the tremendous potential this joint service presents to our clients, empowering them to optimise, mobilise and connect all of their collateral needs across different products and venues,” commented Victor O’Laughlen, Digital Business Leader at BNY Mellon. “Working with Baton, we will be delivering a solution at the leading edge of innovation.”

BNY Mellon’s collateral management system will also orchestrate the collateral allocation workflow and reporting across triparty repo, securities lending, and cleared/uncleared derivatives margining.

“We at Baton Systems are excited to be launching our collaboration with BNY Mellon,” said Jerome Kemp, President at Baton Systems. “The union of Baton’s extensive CCP connectivity with the ground-breaking functionality of BNY Mellon’s ECPO service forms a powerful offering to cleared derivatives market participants. The rapid mobilisation of assets and the enhanced optimisation of margin collateralisation is a game changer for the market.”

The integration is contingent upon the execution of a definitive collaboration agreement, which is expected to be completed in the near term.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: High-Performance Networks & Low-Latency Connectivity for Trading

With financial markets becoming more complex and interconnected in today’s electronic trading environment, trading firms, exchanges, and infrastructure providers need to continually push the boundaries of network performance to stay ahead. Ultra-low latency, seamless connectivity, and resilient infrastructure are no longer just advantages – to stay competitive, they’re necessities. This webinar, part of the A-Team...

BLOG

Sustainable Trading to Wind Down, Leaving ESG Legacy for Trading Industry

Sustainable Trading, the non-profit membership network created to drive environmental, social, and governance (ESG) best practices within the financial trading industry, is set to close its doors. The decision, which comes just over three years after its high-profile launch, was confirmed following a board recommendation and subsequent member vote at an Extraordinary General Meeting on...

EVENT

RegTech Summit London

Now in its 9th year, the RegTech Summit in London will bring together the RegTech ecosystem to explore how the European capital markets financial industry can leverage technology to drive innovation, cut costs and support regulatory change.

GUIDE

Hosted/Managed Services

The on-site data management model is broken. Resources have been squeezed to breaking point. The industry needs a new operating model if it is truly to do more with less. Can hosted/managed services provide the answer? Can the marketplace really create and maintain a utility-based approach to reference data management? And if so, how can...