Best post-trade services provider of the year: Baton Systems

Baton Systems voted Best post-trade services provider of the year at the 2019 FX Week e-FX Awards

Arjun Jayaram - Baton Systems.jpg
Arjun Jayaram: first step to extending the fintech’s offering will be for the platform to facilitate interbank trades

With a payment solution that supports more than a billion events a day, Baton Systems has attracted multiple banks and central counterparties to its platform, which settles $12 billion daily. Now it plans to branch out into interbank trades, foreign exchange prime brokerage (FXPB) and solutions for the buy side.

Baton Systems has built a real-time settlement system for FX trades, using distributed ledger technology to reduce the traditional two-day post-trade cycle to as little as three minutes. The firm says it is on track to reach triple-digit billions of dollars of daily volumes this year.

Baton Systems was voted Best post-trade services provider of the year at the 2019 FX Week e-FX Awards.

Arjun Jayaram, chief executive officer and founder of Baton Systems, says the first step to extending the fintech’s offering will be for the platform to facilitate interbank trades. Currently, settlement is achieved intra-bank – meaning on a bank’s own balance sheet only.

“The interbank settlement network would initially cover four banks – three in the top 10 global FX banks and a fourth in the top 15 globally, which has a large presence in the US,” he says.

APIs integrate with the ledgers of the banks where the assets reside, plus middle and back-office systems, while a customisable software workflow engine automates and synchronises the existing business process within the institution. This results in faster, more efficient payments, a reduction in Herstatt and overall risk, and instant reconciliation and reporting for all parties.

Our solution is to settle a currency pair on one leg and synchronise that with the movement of collateral from a hedge fund client to the PB on the other leg
Arjun Jayaram, Baton Systems

Baton next envisages advancing its solution into the FXPB business of a fifth bank.

Jayaram says: “In prime brokerage there are credit and liquidity problems to be solved, and risks are mitigated by clients posting collateral. Our solution is to settle a currency pair on one leg and synchronise that with the movement of collateral from a hedge fund client to the PB on the other leg.”

The collateral is primarily sovereign debt, such as Treasuries and equities held at custody banks and central securities depositories, both in the US and in Europe.

Baton also intends for its solution to be offered by banks through their portals in a lightweight, white-labelled format for end-clients.

“Hedge funds can send and receive currencies and securities faster, meaning they can trade more. Or it could be deployed for corporate clients, as well as for other lines of business for the bank, such as trade finance or lending,” says Jayaram.

This year, Baton Systems was voted Best post-trade services provider of the year at the 2019 FX Week e-FX Awards.

In March 2018, Baton was one of four companies selected globally to work with the Bank of England to develop a proof-of-concept, examining how a renewed real-time gross-settlement service to deliver a flexible sterling payment system for the UK could operate on innovative payment technologies. Jayaram says Baton remains in active discussions with the BoE.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact customer services - www.fx-markets.com/static/contact-us, or view our subscription options here: https://subscriptions.fx-markets.com/subscribe

You are currently unable to copy this content. Please contact info@fx-markets.com to find out more.

Firms seek optimisation gains as UMR and SA-CCR bite

A wider range of market participants is taking advantage of service providers such as OSTTRA’s optimisation cycles to drive margin and counterparty credit risk efficiencies across asset classes including FX, rates, equities, commodities and credit

Best FX overlay manager: State Street

In the most challenging market environment in many years, demand for State Street’s currency management offering spiked in 2022 as market participants sought assistance in minimising their FX risk and optimising their hedging activities

Best settlement initiative: CLS

Created 20 years ago to mitigate FX settlement risk, CLS continues to lead the settlement sphere with new solutions designed to meet the challenges of an ever-evolving FX market

Best single-dealer platform: Citi

To better connect its various FX solutions and allow its client base access to a broader set of markets, Citi has undertaken an ambitious project to consolidate its entire FX offering under its single-dealer platform

Best liquidity aggregation service: oneZero

oneZero’s technology helps market participants gain a better understanding of the market, as well as access to quality liquidity, better manage their risk and maximise the hedging potential of their FX portfolios

Best exchange for FX: CME Group

Following years of investment in its platform, CME Group has created an FX marketplace that provides market participants with a breadth of trading options that cater for myriad execution and trading styles and market conditions

FX house of the year, Malaysia: OCBC Bank (Malaysia) Berhad

OCBC Bank Berhad, the Malaysian subsidiary of the second-largest banking group in the region, impressed the judges with its agile and customer-centric multichannel FX offering, which allows clients access to the bank via a treasury dealer, its e-platform…

You need to sign in to use this feature. If you don’t have a FX Markets account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: