The collaboration is targeting siloed data and manual collateral management processes.
Baton Systems is working with the Collateral Services team at JPMorgan to help the investment bank’s tri-party clients automate and optimize their collateral management to meet the margin call demands of 13 central counterparty clearinghouses (CCPs) across the globe, officials say.
For this collaboration, the Core-Collateral solution from Baton will be integrated into the CCP Margin Exchange (CCPMx) from JPMorgan, officials add. The collaboration will target “siloed data and manual collateral management processes” that often inhibit knowing where collateral is available and how to optimize its usage.
“Reimagining this process, tri-party clients can now easily aggregate all available collateral across their various sources into a single longbox, automatically select the most cost-effective securities and rapidly mobilize all assets,” according to Baton.
The collaboration went live with its first CCP in November, which will be followed by a rollout of the solution across Baton’s CCP network which includes “CCPs across EMEA, North America and Asia, together comprising more than 94 percent of cleared margin posted by U.S. registered FCMs,” according to Baton. More CCPs are “expected to be added in the new year.”
The alliance is intended to “improve the efficiency of the collateral management process, allowing more effective funding decisions to be made and reducing operational risk,” according to Baton.
Baton Systems offers post-trade processing systems for “trade matching through to settlement” via “automated, rules-based workflows, access to real-time information, and on-demand settlement,” officials say.
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