The Singapore Exchange (SGX) has integrated post-trade and blockchain technology provider Baton Systems to automate and standardise its workflow on one dashboard.
The end-to-end workflow will give SGX clients access to consolidated intra-day information on a single dashboard that includes real-time visibility of margin requirements, a standardised process for pledging, and recalling collateral, and a clear visibility of the progress of asset movements.
Baton’s system harmonises data and workflows for all central clearing counterparties (CCPs) offering improved operational efficiency for clients.
“By expanding the scope of our CCP connectivity, we are enabling greater efficiency across the entire collateral workflow process for all market participants,” said Tucker Dona, head of business development and client success at Baton Systems. “Our customers and partner CCPs observed during the recent periods of volatility just how important this really is.”
The partnership also allows SGX to reduce the number of manual touchpoints used when working with clearing members, further enhancing efficiency.
“In today’s low interest rate environment coupled with new margin rules for un–cleared derivatives (UMR) transactions, collateral optimisation is an important focus for clearing members globally, many of whom are SGX’s clients,” said Alison King, head of trading and clearing services, equities at SGX.
“As we look to innovate and continuously enhance our clients’ trading and clearing experience, we partnered with Baton Systems to offer our clients visibility of intra-day margin data on SGX Titan derivatives and clearing platform, to reduce any friction associated with collateral movements, which is especially crucial in a market with increasing liquidity and activity.”
SGX is the first Asian CCP to on-board Baton. The post-trade tech provider confirmed it also has plans to expand its office in India.
Last week, US investment bank Citi overhauled its treasury function for cleared derivatives through a new partnership with Baton Systems.
Citi will automate rules for the movements of cash and securities collateral to and from clearing houses in a bid to reduce risk by removing manual entries in systems.