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

Upcoming Webinar: Trade the Middle East & North Africa: Connectivity, Data Systems & Processes

In Partnership With Date: 20 May 2024 Time: 11am London / 1pm Egypt & Saudi Arabia / 2pm United Arab Emirates / 6am CET Duration: 50 minutes As key states across the region seek alternatives to the fossil fuel industries that have driven their economies for decades, pioneering financial centres are emerging in Egypt, United...

BLOG

New DTCC Report Recommends Best Practices to Achieve T+1 Settlement Success

In anticipation of the transition to a T+1 settlement cycle in the US, the Depository Trust & Clearing Corporation (DTCC) has released a new report, “Hitting 90% Affirmation by 9:00 PM ET on Trade Date: The Key to T+1 Success”, which highlights the importance of automating post-trade processes to achieve success in the upcoming T+1...

EVENT

Buy AND Build: The Future of Capital Markets Technology, London

Buy AND Build: The Future of Capital Markets Technology London on September 19th at Marriott Hotel Canary Wharf London examines the latest changes and innovations in trading technology and explores how technology is being deployed to create an edge in sell side and buy side capital markets financial institutions.

GUIDE

Regulatory Data Handbook 2019/2020 – Seventh Edition

Welcome to A-Team Group’s best read handbook, the Regulatory Data Handbook, which is now in its seventh edition and continues to grow in terms of the number of regulations covered, the detail of each regulation and the impact that all the rules and regulations will have on data and data management at your institution. This...