Baton Systems Adds Portfolio Optimization for Multi-Venue…
By Rick Steves
AI summary of the source article
Baton Systems has introduced a portfolio optimization tool for collateral managers, treasury teams, and clearing operations. The capability assesses cash and securities across multiple obligations simultaneously and integrates with automated collateral movement workflows.
Why it matters
Baton states that a portfolio-wide view can help "reduce funding costs, avoid unnecessary use of scarce liquidity and make collateral movements easier to manage," particularly when margin demands surge or liquidity is costly.
Key facts
- The optimizer evaluates cash and securities across multiple obligations at once using mixed-integer linear programming, stochastic programming, and multi-period optimization.
- The tool builds on Baton's Core-Collateral infrastructure, which currently orchestrates tens of billions of dollars in collateral movements daily.
- The launch initially focuses on cleared collateral for clearing members, with architecture designed to incorporate bilateral schedules.
Source excerpt · FinanceFeeds
The new capability assesses cash and securities across multiple obligations, with configurable priorities for funding cost, HQLA and operational workload. Baton Systems has introduced a portfolio optimization capability for collateral managers, treasury teams and clearing operations. The system is designed to assess cash and securities across multiple obligations at once, rather than optimizing on…