SGX Announces Partnership with Baton Systems to Automate Collateral Workflow

Singapore Exchange (SGX), a key multi-asset exchange in Asia's securities and derivitives market, announced on 15th Octorber that it has partnered with Baton Systems ("Baton"), a provider of post-trade solutions for capital markets, to automate and standardize the end-to-end collateral workflow for its clients.

Baton's solution normalizes and harmonizes data and collateral workflows for all integrated central clearing counterparties (CCPs), the partnership gives SGX's clients access to consolidated intra-day information. Through a single dashboard, the clients can obtain information about real-time margin requirements, the standardized process for pledging and recalling collateral, and the progress of asset movements between SGX and themselves.

The resulting end-to-end automation of the collateral workflow process significantly improves operational efficiency. The deep integration provided by Baton also means that SGX will benefit from increased efficiency and reduced manual touchpoints when working with its clearing members.

"We are excited to partner with SGX as we continue broadening our CCP integrations," said Tucker Dona, Head of Business Development and Client Success at Baton Systems. "By expanding the scope of our CCP connectivity, we are enabling greater efficiency across the entire collateral workflow process for all market participants. "

"In today's low interest rate environment coupled with new margin rules for uncleared derivatives (UMR) transactions, collateral optimization 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."

SGX is Baton's first Asian CCP. With this partnership, Baton is extending its network across the region.