Baton Systems partners with Citi to enhance treasury function for cleared drivatives

By Pavithra R

Baton Systems, bringing a new level of efficiency to the payments infrastructure across the capital markets has announced that the company has partnered with Citi to help build its treasury function for cleared derivatives.

Under the partnership, Baton’s platform will aggregate data from Citi’s banks and custodians and track collateral collected from its clients all the way through to CCPs. Baton also enables real-time visibility of excess/deficit calculations, collateral posted, and eligibility, haircuts and risk thresholds for specific clearing houses. 

“Managing and redeploying cash and collateral has always been critical for safe and economic performance of clearing members. As evidenced by the recent bout of volatility, it is even more critical for financial institutions to be equipped with tools that will help them effectively manage their intraday liquidity needs and reduce risk. Baton is increasingly recognized as the leading industry provider for these capabilities, and we look forward to playing a role in improving Citi’s treasury workflows,” said Arjun Jayaram, CEO and Founder of Baton Systems.

The Baton platform is scalable across any financial institution, exchange or clearing house. Citi will implement automated rules to optimize the movements of cash and securities to/from clearinghouses, reduce collateral risk and cut operational costs and eliminate manual entries into multiple systems.

“Our integration with Baton will help drive greater efficiency across our entire collateral workflow process and significantly reduce the risks we typically see with manual intervention. The automation and real-time view of collateral the system provides will enable us to more effectively deploy capital in the right place at the right time,” said Mariam Rafi, Head of Financial Resources Management for Citi Futures, Clearing and FXPB.

Baton System was founded as Ubixi in 2016 by industry veterans in technology, payments and capital markets. The company is a provider of clearing and settlement platform which provides real-time transparency to transactions. It eliminates the need for human intervention for real-time reconciliation by acting as a gateway between bank ledgers. The company is extending its network across North America, Asia and Europe, and is in the process of expanding its office in New York and India.

Also, read Treasury and Capital Markets Systems Report 2020.