Baton Systems has integrated with clearing house LCH to automate the end-to-end collateral workflow for derivatives participants.
The addition of LCH will extend Baton’s network of central counterparties (CCPs) that now includes CME, Eurex and SGX with more being added as clients request them.
Baton's shared permissioned ledger integrates with existing collateral and cash systems of external providers, including CCPs and custodians, to enable visibility and accelerated movement of assets.
J.P. Morgan will be the first of Baton's clients to manage their collateral at LCH using the Baton platform.
Anthony Fraser, head of global clearing operations and cost and commission services at J.P. Morgan, says the integration with LCH is “a significant milestone in its aim to have comprehensive global coverage of CCPs on the platform”.
"This will bring further efficiency in our collateral management process and will provide greater real-time visibility of our margin and collateral holdings,” Fraser adds.
Tucker Dona, head of business development and client success at Baton Systems, comments: "With additional CCP connectivity, we are streamlining the collateral workflow process for market participants and enabling greater efficiency while also reducing costs typically associated with legacy systems."
In 2019, Baton Systems worked with J.P. Morgan to develop a distributed ledger technology platform to help redeploy cash and collateral balances more effectively to global clearinghouses.
