Baton Systems launches DLT-powered post-trade solution Core-Payments ahead of T+1
“With the transition to T+1 now just months away, and with regulators growing increasingly vocal around the need for greater settlement control and supervision, it is paramount that market participants ensure they are fully prepared to cope with any rise in settlement risk
Baton Systems, a global fintech company leading the charge in digitally transforming post-trade processing through distributed ledger technology (DLT), is proud to announce the launch of Core-Payments. This game-changing digital solution empowers financial firms with automated, comprehensive, and real-time control of their cash settlements.
Core-Payments leverages Baton’s cutting-edge DLT workflows to usher in a new era of settlement control. It automatically tracks and reconciles inbound cash settlements while orchestrating the release of outbound cash payments based on configurable rules and real-time data. This groundbreaking solution significantly reduces the need for manual intervention in crucial reconciliation and control processes, including netting and pre-settlement affirmation.
Ability to reconcile inbound and outbound payments in real-time
One of Core-Payments’ standout features is its ability to reconcile inbound and outbound payments in real-time. This is a significant departure from the industry’s historical standard of T+1 or longer settlement cycles. With the transition to T+1 for US securities just months away, Core-Payments arrives at a pivotal time, granting market participants real-time visibility and enhanced control over their settlement functions.
By automating key settlement processes, Core-Payments not only accelerates essential functions but also reduces operational costs. It empowers financial firms to operate more efficiently, lower costs, increase their counterparty footprint, and meet growing regulatory requirements. Additionally, it provides clear visibility into counterparty settlement risk exposure and current and forecasted funding requirements.
Core-Payments is designed to be deployed modularly, offering users a flexible set of interfaces across various modules, including Visualisation, Netting/Pre-Settlement Affirmation, Controlled Settlement, and Analytics. Furthermore, all data inflows and outputs are supported by a range of APIs and integration protocols. This means that firms can digitally transform their approach to payments and settlement without requiring their counterparties to adopt new technology.
Transition to T+1 now just months away
Alex Knight, head of EMEA, Baton Systems, said: “With the transition to T+1 now just months away, and with regulators growing increasingly vocal around the need for greater settlement control and supervision, it is paramount that market participants ensure they are fully prepared to cope with any rise in settlement risk. For too long now, legacy processes for monitoring and managing settlement risk have stifled industry progress. Adopting cutting-edge solutions like Core-Payments is a pragmatic first step in, helping firms manage risk, operate more efficiently, lower costs, increase their counterparty footprint, meet growing regulatory requirements, and provide excellent customer service.”
Baton Systems has facilitated the settlement of over $7.1 trillion in cash and securities, partnering with some of the world’s largest banks to leverage its technology. The company’s mission is to revolutionize the entire post-trade process, creating interoperable and connected digital market infrastructures.
As the financial industry gears up for the T+1 transition, Core-Payments from Baton Systems promises to be a game-changer. It empowers financial firms with the tools they need to navigate the evolving landscape of settlement with automation, real-time control, and enhanced visibility.