Baton Systems, a leading provider of innovative post-trade and collateral management technology solutions for capital market firms, has reported that the value of client asset movements instructed using its Core-Collateral® solution has reached a record high. By the end of October 2024, over $3.3 trillion in cash and securities had been mobilised through the platform year to date — a nearly 50% increase compared to the same period in 2023 and more than double the value of asset movements recorded between January and October 2022.

Baton’s Core-Collateral solution allows financial institutions to manage collateral in real time across a network of central counterparties (CCPs), custodians, and nostro accounts. The unprecedented growth in the value of asset movements executed using the platform comes as the financial industry continues to face periods of market volatility – with the value of assets mobilised surging to an all-time high in the wake of the August equities sell-off. When a bout of pronounced market turbulence strikes, leveraging real-time balances to optimise collateral allocations and execute bulk cash and collateral movements efficiently across multiple venues enables banks to respond to changing market conditions with agility.

“We’re seeing a clear shift in the way banks manage their collateral,” commented Arjun Jayaram, Founder and CEO of Baton Systems, adding, “The explosive growth witnessed in the value of asset movements highlights the benefits of replacing manual processes with real-time, intelligent, automated solutions. With Core-Collateral, firms can optimise and activate funding decisions faster, with full visibility and automated control over their entire collateral universe.”

Baton’s Core-Collateral solution is now used by five of the top 10 futures commission merchants (FCMs) by total funds held, further validating the platform’s role as a critical tool for large, global financial institutions.

Source: Baton