Baton Systems

Baton Systems has expanded its Core-Collateral network with the integration of Euronext Clearing, enabling clients to automate and optimise collateral management for derivatives and options that recently moved from LCH SA. https://lnkd.in/dQE5csaf

Are Manual Reconciliation Processes Putting Your Business at Risk? It's not just about operational inefficiencies - manual reconciliation processes could be exposing your business to far greater risks. A recent industry report highlights the growing concern of "operational disaster" due to the continued reliance on manual reconciliation amidst increasing transaction volumes. Key findings from the survey, featured in Eugene Grygo's article via Financial Technologies Forum (FTF): ▪️ 79% of respondents stated their reconciliation processes are struggling to keep up with current data volumes – or, would if volumes were to increase. ▪️ A 39% increase in daily transaction volumes is expected over the next two years. ▪️ Over 50% of firms surveyed still rely on outdated methods like spreadsheets and legacy applications to manage data reconciliation. These operational risks are significant and require urgent attention. However, I feel the impact of manual reconciliations (including, the T+1 recon process used by many) goes beyond just operational concerns and should be discussed. It can also create substantial #liquidityrisk and #counterpartyrisks. When firms lack real-time visibility into whether payments have been sent or received, or can't assess their exposure to struggling counterparties across the organization, the risks escalate quickly. Slow, manual reconciliation processes amplify these vulnerabilities, potentially creating enterprise-wide liabilities. Financial institutions need to ask hard questions about the robustness of their reconciliation processes: ▪️ What happens during the next Credit Suisse-like liquidity crisis? ▪️ Can we rapidly assess our firm-wide exposure and determine if it will affect our ability to meet intraday liquidity needs? ▪️ Will we be able to identify which payments we've received from a struggling counterparty, ensuring we know which payments we can safely reciprocate? ▪️ Will uncertainty cause delays in payouts and risk broader disruption? The point I’d like to make is that far too often manual reconciliations are seen as a back-office operational concern – one that causes inefficiencies. But the reality is very different, and the stakes are far higher. If you'd like to explore this topic further, I'd be happy to discuss how we're implementing real-time, automated reconciliation processes that provide teams with the insights they need to make informed decisions when it matters most. Feel free to message me, and we can schedule a time to meet. https://lnkd.in/eJvQdpp6 #OperationsRisk #Reconciliation #Automation #FinancialServices #RiskManagement

On 1 April 2025, the BIS will launch the 14th Triennial Central Bank Survey of foreign exchange and over-the-counter derivatives markets, the most comprehensive source of information on the size and structure of global foreign exchange (FX) and over-the-counter (OTC) derivatives markets. With contributions from more than 1,100 financial institutions in 52 reporting jurisdictions, the survey provides insights that help central banks, regulatory authorities and market participants monitor developments in OTC derivatives markets and inform discussions on reforms. Preliminary results for turnover will be published in September 2025 and for OTC derivatives outstanding in November 2025. The final results for turnover, FX settlement and OTC derivatives outstanding will be published in December 2025. Know more: https://bit.ly/42h0jM7 #BISStatistics #Statistics

Baton is thrilled to announce our upcoming involvement with BAFT (Bankers Association for Finance and Trade)! As a proud member of this global financial community, we’re excited to work alongside regional councils across Africa, Asia, Europe, the Middle East & North Africa, and North America. Together, we’ll focus on addressing regional concerns and driving impactful change. BAFT’s commitment to thought leadership, advocacy, education, and connectivity aligns perfectly with our mission. From access to best practice guides and regulatory insights to hosting conferences and creating invaluable networking opportunities, BAFT serves as a vital hub for innovation and collaboration in the banking and financial space. We can’t wait to connect with fellow transaction banking professionals, exchange ideas, and contribute to this growing global community. Here’s to shaping the future of finance together! #BAFT #FinancialInstitutions #Fintech #FinancialServices #Banking

ICMA updates SFTR recommendations. The ‘Recommendations for Reporting under SFTR’ guide provides a number of updates such as for the reporting of sponsored repo and cash collateral https://lnkd.in/eJZYJgkb #SecuritiesLending #banking

We're thrilled to announce the further expansion of our Core-Collateral® network with the integration of Euronext Clearing. This new integration underscores our dedication to providing clients with the direct, two-way connectivity they need to efficiently manage collateral across the CCPs that are most strategically significant to their business. Two-way connectivity is particularly valuable, as it empowers clients to both consume CCP data and instruct collateral movements across our ever-growing network - especially when you consider that with Euronext Clearing, Baton’s CCP coverage now includes 96% of initial margin worldwide. With Euronext Clearing now part of our network, clients can now use intelligent, automated workflows powered by real-time data to optimise margin for Euronext derivatives and options products previously cleared through LCH SA that have now migrated onto Euronext Clearing. Read the full release here: https://lnkd.in/gmpDBUw6 #CollateralManagement #EuronextClearing #CCPIntegration #FinTech #MarginOptimization #ClearingSolutions #FinancialTechnology