Citi, CME Group Implement Baton Systems’ Distributed Ledger Platform to Drive Down Cost of Margin Funding
December 15 2017 - 8:59AM
Business Wire
Citi and CME Clearing have implemented a real-time distributed
ledger platform developed by Baton Systems, a payments technology
provider. The solution allows a bank to view the collateral in its
ledgers in real time, send cash or securities with one click to a
clearing house, and receive an immediate acknowledgment, regardless
of the current technologies they are deploying.
The blockchain-inspired software could materially reduce the
cost of back-office operations and speed up margin funding times.
Currently, banks have to set aside capital as they wait for
collateral to be settled; this platform could potentially free up
billions of dollars in capital if trade times can be reduced from
days to seconds.
“This technology allows us to eliminate manual touch points,
reduce email traffic, and avoid logging into multiple portals,”
said Stephen Marx, Head of Futures, Clearing, and Collateral
Operations at Citi. “The capabilities in the funding and collateral
space create efficiency and improve productivity for our
clients.”
“This innovative real-time payments platform is
immediately scalable across any financial institution,
exchange or clearing house to deliver sizeable operational and
cost efficiencies,” said Arjun Jayaram, CEO of Baton Systems. “Its
beauty is its simplicity, leveraging the most useful elements of
blockchain, while introducing interoperability and
extensibility to easily fit with existing technology 'rails' and
business processes.”
“We are pleased to support technologies like these, which aim to
provide capital efficiencies to customers,” said Sunil Cutinho,
President of CME Clearing.
Baton Systems is exploring other uses for the API-driven
platform, including allowing clients access to distributed ledgers
to shorten the cycle for collateral substitutions.
Citi, the leading global bank, has approximately 200 million
customer accounts and does business in more than 160 countries and
jurisdictions. Citi provides consumers, corporations, governments
and institutions with a broad range of financial products and
services, including consumer banking and credit, corporate and
investment banking, securities brokerage, transaction services, and
wealth management.
Additional information may be found at http://www.citigroup.com
| Twitter: @Citi | YouTube: http://www.youtube.com/citi | Blog:
http://blog.citigroup.com/| Facebook: http://www.facebook.com/citi
| LinkedIn: www.linkedin.com/company/citi.
About CME Group
As the world's leading and most diverse derivatives marketplace,
CME Group (www.cmegroup.com) is where the world comes to manage
risk. CME Group exchanges offer the widest range of global
benchmark products across all major asset classes, including
futures and options based on interest rates, equity
indexes, foreign exchange, energy, agricultural
products and metals. Around the world, CME Group brings
buyers and sellers together through its CME Globex® electronic
trading platform. CME Group also operates one of the world's
leading central counterparty clearing providers through CME
Clearing, which offer clearing and settlement services across asset
classes for exchange-traded and over-the-counter derivatives. CME
Group's products and services ensure that businesses around the
world can effectively manage risk and achieve growth.
CME Group, the Globe logo, CME, Chicago Mercantile Exchange,
Globex and E-mini are trademarks of Chicago Mercantile Exchange
Inc. CBOT, Chicago Board of Trade, KCBT and Kansas City Board of
Trade are trademarks of Board of Trade of the City of Chicago, Inc.
NYMEX, New York Mercantile Exchange and ClearPort are trademarks of
New York Mercantile Exchange, Inc. COMEX is a trademark of
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Trademark Holdings LLC, Standard & Poor's Financial Services
LLC and S&P/Dow Jones Indices LLC, as the case may be, and have
been licensed for use by Chicago Mercantile Exchange Inc. All other
trademarks are the property of their respective owners.
About Baton
Baton Systems delivers advanced technology solutions, bringing a
new level of speed, efficiency and accuracy for financial
institutions to clear, settle and manage payments. Founded in 2016
by industry veterans in technology, payments and capital markets,
and backed by venture capital, Baton Systems works with numerous
market participants – including major global banks, custodian banks
and exchanges – to meet today’s demands for cost savings,
regulatory requirements and better capital management. For more
information, please visit https://www.batonsystems.com/
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Media:Citigroup Inc.Scott Helfman, +1 212-816-9241
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