BNY Mellon Collaborates to Deliver Collateral Optimization Solution

BNY Mellon and Baton Systems, a post-trade processing provider that uses distributed ledger technology (DLT), have announced a collaboration to integrate Baton’s Core-Collateral solution into BNY Mellon’s collateral management platform. This will enable mutual clients to optimize portfolio allocations and accelerate the mobilization of cash and securities collateral across both uncleared and cleared margin obligations globally. Baton’s Core-Collateral solution enables Clearing Members to automate and optimize their collateral management processes by providing intraday visibility of current margin obligations and collateral holdings at chosen Central Clearing Counterparties (CCPs). By bringing together Baton’s established CCP network and BNY Mellon’s Enterprise Continuous Portfolio optimization (ECPO) service, the new jointly distributed offering will support clients in reducing funding costs and improving profitability, while increasing the velocity of collateral to better manage risk. BNY Mellon’s collateral management system will also orchestrate the collateral allocation workflow and reporting across triparty repo, securities lending, and cleared/uncleared derivatives margining. The integration is contingent upon the execution of a definitive collaboration agreement, which is expected to be completed in the near term.