The new links are in response the SEC’s U.S. Treasury clearing mandates.
Officials at Baton Systems report that the provider of connectivity and networks for settlement and collateral management has established direct links to the DTCC’s Fixed Income Clearing Corp. (FICC) and to its other clearing subsidiary, the National Securities Clearing Corp. (NSCC).
The new links are “in response to client demand and the anticipated surge in clearing volumes expected” to be directed to the FICC via the SEC’s U.S. Treasury clearing mandate, slated to take effect on Dec. 31, 2026 for cash transactions and on June 30, 2027, for repo transactions, officials say. “Baton worked collaboratively with DTCC to provide the direct connectivity to link FICC to its Core-Collateral network.”
The NSCC link will help clear and settle “virtually all broker-to-broker equity, corporate and municipal bond and unit investment trust (UTI) transactions in the U.S. markets,” officials say.
The new connections are intended to help improve access, control, and efficiency in managing U.S. Treasury collateral operations for Baton’s Core-Collateral clients and those firms working with Baton to help tri-party clients use Baton’s direct two-way CCP connectivity, say Baton officials.
“Core-Collateral’s clients include several of the world’s largest futures commission merchants (FCMs),” officials say. “The first client to manage their collateral at FICC using the Core-Collateral network is now live, and movements are actively being instructed via the platform.”
