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


Recorded Webinar: Adding cloud to your high performance trading infrastructure

Adding cloud to high performance trading infrastructure offers the benefits of scalability, faster development, and lower capex costs – but can it meet required speeds of data delivery, does it limit the extent of available data, and how can low-latency data be sourced in the cloud? Still more, is it feasible to run a complete...


Tradeweb & S&P Global Market Intelligence Collaborate to Link Up European Primary & Secondary Bond Markets

Tradeweb, the electronic marketplace operator, has collaborated with S&P Global Market Intelligence, the financial information services provider, to introduce electronic connectivity between primary and secondary markets for European credit, covered, sovereign, supranational and agency (SSA) bonds. With the integration of InvestorAccess, S&P Global Market Intelligence’s digital primary market platform, Tradeweb clients will now be able...


RegTech Summit APAC

Now in its 2nd year, the RegTech Summit APAC will bring together the regtech ecosystem to explore how capital markets in the APAC region can leverage technology to drive innovation, cut costs and support regulatory change. With more opportunities than ever before for RegTech to add value, now is the time to invest for the future. Join us to hear from leading RegTech practitioners and innovators who will share insights into how they are tackling the challenges of adopting and implementing regtech and how to advance your RegTech strategy.


Evaluated Pricing

Valuations and pricing teams are facing a much higher degree of scrutiny from both the regulatory community and the investor community in the glare of the post-crisis data transparency spotlight. Fair value price transparency requirements and the gradual move towards a more harmonised accounting standards environment is set within the context of the whole debate...