Baton connects with FICC and NSCC
13 May 2025 US
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Baton Systems has directly connected the Depository Trust & Clearing Corporation鈥檚 (DTCC鈥檚) Fixed Income Clearing Corporation (FICC) and National Securities Clearing Corporation (NSCC) to its Core-Collateral network.
As firms are preparing for the US Securities and Exchange Commission鈥檚 (SEC鈥檚) Treasury clearing mandate, Baton is now providing clients with direct connectivity to DTCC鈥檚 FICC.
This is in response to client demand and the anticipated surge in clearing volumes expected to be directed to FICC, according to Baton.
Brian Steele, president of clearing and securities services at DTCC, comments: 鈥淲ith firms actively preparing for US Treasury clearing, we view the FICC link to the Baton network of clearing participants as an important enabler of collateral efficiencies.鈥�
Baton aims to support clients through this critical transition, reducing operational friction, supporting collateral optimisation and liquidity management, in addition to solving for the requirements of an evolving regulatory landscape.
With this new connectivity, Baton鈥檚 collateral management clients can streamline collateral management processes for US Treasuries that they choose to clear with FICC, says the firm.
Arjun Jayaram, founder and CEO of Baton Systems, says: 鈥淥ur connection with FICC means much of the heavy lifting our clients would otherwise need to do to connect with the clearing house is already done.鈥�
Clients will be able to access real-time balance information and eligibility schedules necessary to optimise resource allocation and then instruct asset and collateral movements to and from FICC.
The first client to manage their collateral at FICC using the Core-Collateral network is now live, Baton has confirmed, and movements are actively being instructed via the platform.
In addition to Baton鈥檚 new FICC connectivity, the firm has also directly connected to NSCC, DTCC鈥檚 subsidiary that clears and settles virtually all broker-to-broker equity, corporate and municipal bond, and unit investment trust transactions in the US markets.
Baton believes that this move further extends the ability of its clients to streamline their collateral management processes across DTCC鈥檚 central clearing offerings and benefit from enhanced liquidity visibility, access, and control.
Jayaram adds: 鈥淲ith the integration of FICC into Baton鈥檚 Core-Collateral ecosystem, we are well-placed to help firms prepare for the go-live of US Treasury Clearing.
鈥淎t the same time, our connectivity to NSCC enables us to further streamline collateral management processes and improve liquidity for clients.鈥�
As firms are preparing for the US Securities and Exchange Commission鈥檚 (SEC鈥檚) Treasury clearing mandate, Baton is now providing clients with direct connectivity to DTCC鈥檚 FICC.
This is in response to client demand and the anticipated surge in clearing volumes expected to be directed to FICC, according to Baton.
Brian Steele, president of clearing and securities services at DTCC, comments: 鈥淲ith firms actively preparing for US Treasury clearing, we view the FICC link to the Baton network of clearing participants as an important enabler of collateral efficiencies.鈥�
Baton aims to support clients through this critical transition, reducing operational friction, supporting collateral optimisation and liquidity management, in addition to solving for the requirements of an evolving regulatory landscape.
With this new connectivity, Baton鈥檚 collateral management clients can streamline collateral management processes for US Treasuries that they choose to clear with FICC, says the firm.
Arjun Jayaram, founder and CEO of Baton Systems, says: 鈥淥ur connection with FICC means much of the heavy lifting our clients would otherwise need to do to connect with the clearing house is already done.鈥�
Clients will be able to access real-time balance information and eligibility schedules necessary to optimise resource allocation and then instruct asset and collateral movements to and from FICC.
The first client to manage their collateral at FICC using the Core-Collateral network is now live, Baton has confirmed, and movements are actively being instructed via the platform.
In addition to Baton鈥檚 new FICC connectivity, the firm has also directly connected to NSCC, DTCC鈥檚 subsidiary that clears and settles virtually all broker-to-broker equity, corporate and municipal bond, and unit investment trust transactions in the US markets.
Baton believes that this move further extends the ability of its clients to streamline their collateral management processes across DTCC鈥檚 central clearing offerings and benefit from enhanced liquidity visibility, access, and control.
Jayaram adds: 鈥淲ith the integration of FICC into Baton鈥檚 Core-Collateral ecosystem, we are well-placed to help firms prepare for the go-live of US Treasury Clearing.
鈥淎t the same time, our connectivity to NSCC enables us to further streamline collateral management processes and improve liquidity for clients.鈥�
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