Baton Systems has completed bi-directional integration with the Japanese Securities Clearing Corporation (JSCC) through its Baton Core-Collateral ecosystem.
The move will enable JSCC’s clearing member clients using the Core-Collateral platform to have direct access to the largest central counterparty clearing house (CCP) in Asia Pacific (APAC).
The addition builds upon the existing integration with SGX, increasing the network of APAC CCPs accessible through Baton.
Through the direct connectivity, clearing members will receive normalised data from Baton directly from the CCP, avoiding the need to receive files via clearing members.
According to Baton Systems, this enhances efficiency and enables the clearing member to receive real-time balances with the ability to check eligibility and then to instruct and move cash and non-cash collateral to JSCC.
“The addition of JSCC to the Baton Core-Collateral ecosystem is a big step to increasing access to the most strategically important CCPs for our clients. As a result, we are able to assist more FCMs and clearing members globally to automate and optimise a significant proportion of their collateral holdings,” said Tucker Dona, head of business development and client success at Baton Systems.
“This is incredibly important in helping these firms reduce dependency on manual processes and optimise collateral management at a time when market volatility and a higher interest rate environment place growing pressure on the margin posting process.”
Users of Baton’s Core-Collateral are now able to automate and expedite the movement of cash and securities across 13 CCPs. This can be done via a single platform which also consolidates and normalises real-time updates related to required margin, sources of collateral, and eligibility profiles.
Elsewhere, collateral eligibility data for JSCC will be integrated into Baton’s eligibility application programming interface (API), enabling automated, real-time recognition of which assets can be used as collateral. This will help improve the collateral management process for users alongside helping meet compliance with CCP requirements.
“We are delighted to work with Baton Systems on this collaboration. This will provide our clearing members with greater post-trade operational efficiency, through Baton’s ability to provide real-time intraday balances and an enhanced methodology of moving collateral,” said Yasuhiko Tamura, executive officer of OTC derivatives clearing services at JSCC.