Today Baton Systems announced that London Stock Exchange Group-owned LCH SA has integrated with the DLT-based Baton Core Collateral system. The DLT solution helps manage collateral used for margin requirements for cleared FX derivatives and was launched in 2019 with JP Morgan as the first client. The European central counterparty clearinghouse (CCP) LCH SA joins UK-based LCH Limited, which connected a year ago.
A total of 11 CCPs are integrated, including ICE Clear Europe, CME, Eurex and SGX. Initially, Baton and LCH SA have partnered for connectivity to the CDSClear service.
The key benefit of the Core Collateral solution is automating workflows for collateral and providing intraday visibility into margin obligations and collateral holdings. Ultimately automation means money is tied up for less time and saves money.
“In doing so, they can take greater control of their collateral under management and better support their clients, achieve higher net interest income and build a more scalable business with reduced dependency on manual processes,” said Tucker Dona, Head of Business Development at Baton Systems.
In a recent interview with Baton’s CEO Arjun Jayaram, he stated that 40% of the global margins for cleared bank derivatives move through the platform.
Baton has four post-trade solutions, with HSBC and Wells Fargo using its FX Core solution for bilateral FX settlement. Today the company stated that its solutions have been used to settle more than $7 trillion in cash and securities to date.
