Baton Systems Adds Support for ISDA CDM
Baton Systems, a provider of distributed ledger-based post-trade and payments solutions for capital markets, today announced native support for ISDA’s Common Domain Model, or CDM 1.0, a new standard digital representation of events and actions that occur during the life of a derivatives trade.
The adoption of CDM will facilitate interoperability and consistency of trading data across firms and platforms, enabling clients to quickly and seamlessly connect their existing swaps and derivative systems to the Baton platform and manage the end-to-end trade lifecycle of OTC securities. This includes executing smart contracts based on trade events such as amends, novations, aggregations, compressions, clearing, margining and settlements.
“By introducing common standards, ISDA is providing the toolkit to enable broader digitization. This will shape what is possible in the world of derivatives, not just months ahead, but many years into the future,” said Arjun Jayaram, CEO and Founder of Baton.
“We need rapid and universal deployment of this important industry standard, which will enable all firms to effectively speak the same language in the derivatives market,” said Scott O’Malia, ISDA’s Chief Executive. “Broad-based support of firms is vital for adoption of ISDA CDM 1.0 across the industry.”
The Baton platform is currently in production in multiple global banks for settlement of margin collateral and foreign exchange, enabling the near real-time settlement of real assets held in bank accounts without the need for digital or crypto assets.
The new tool is set to support upcoming Phase 4 and 5 initial margin requirements.
Deutsche Bank and Nomura launched swaptions trading on the standardized infrastructure.
Regulatory deference likely to become the fashion of the day.
The industry can share its insights regarding capital, margin and segregation requirements.
Firms that pose little systemic risk may stress industry resources.