Baton Systems CEO Outlines Expansion, Future of Collateral Sector

Jun 12, 2024

John Lothian

John Lothian

Executive Chairman and CEO

BOCA RATON, FL (JLN) – Arjun Jayaram, founder and CEO of Baton Systems, discussed the company’s expansion plans and the future of the collateral sector in an interview at the FIA’s International Futures Industry Conference.

Jayaram said Baton is seeing increased demand to extend its core collateral products beyond cleared derivatives markets into uncleared derivatives and the broader collateral ecosystem. This includes providing real-time asset inventory visibility, eligibility mapping across venues, and facilitating mobilization of collateral assets.

“It’s a complex space…having real-time inventory of all assets” is crucial, Jayaram said. “The second part is providing eligibility across various venues. And the third one is asset mobilization. That’s what we will be focusing on over the next couple of years.”

On the future collateral landscape, Jayaram said the repo market, securities lending, securities financing and related sectors currently make up the biggest portions based on data analysis.

However, he said solving collateral mobility across bilateral relationships is “not an easy problem,” which Baton aims to tackle by layering eligibility mapping on top of its real-time inventory capabilities.

Regarding distributed ledger technology’s role, Jayaram said it enables multiple parties to share data and execute collaborative workflows, something Baton already does well in the FX space. “You’ve got to bring some of those capabilities back into the collateral space, because that’s a truly bilateral world which has to be collaborative workflows and shared data,” he said. That is where he sees the application of DLTs and even tokens in the years ahead, Jayaram said.

Wall Street Starts Calling Time on ESG Labels After Backlash

Wall Street Starts Calling Time on ESG Labels After Backlash

First Read Hits & Takes John Lothian & JLN Staff Miami International Holdings, Inc. (MIH) announced that the SEC has approved MIAX Sapphire LLC's application to become a national securities exchange. MIAX Sapphire, MIH's fourth national securities exchange for...

We visit more than 100 financial news websites daily (Would YOU do that?)

The Spread

Todays  Options Newsletter

Traders Betting on China Easing Boost Bearish Options on Banks

Observations & Insight Miami International Holdings, Inc. (MIH) announced that the SEC has approved MIAX Sapphire LLC's application to become a national securities exchange. MIAX Sapphire, MIH's fourth national securities exchange for U.S. multi-listed options,...

Now Read This

Options Education Goes Mobile: How Mat Cashman Is Bringing Wall Street to Your Pocket

Options Education Goes Mobile: How Mat Cashman Is Bringing Wall Street to Your Pocket

In the dynamic world of financial derivatives, Mat Cashman of the Options Industry Council (OIC) is on a mission to demystify the complex realm of options trading. As part of the OIC’s investor education team, Cashman is at the forefront of a digital revolution in financial literacy, adapting to the changing habits of a new generation of traders.

“We’re seeing a mirror of what’s happening in the entire industry—the democratization of access to information,” Cashman explains, noting the shift towards mobile-based trading. With 97% of options trades on some platforms now executed via smartphone, the OIC is pivoting to meet traders where they are: on their phones, with attention spans shrinking by the minute.

OCC’s Tech Overhaul Poised to Reshape Options Trading

OCC’s Tech Overhaul Poised to Reshape Options Trading

In the heart of Asheville, NC, in a quiet corner of the bustling Options Industry Conference, Mike Hansen, the chief clearing and settlement services officer of the Options Clearing Corporation (OCC), sat down for an interview with John Lothian News for the JLN Industry Leader video series sponsored by the OCC. His demeanor was calm, but his words carried the weight of an industry on the cusp of significant change.

Hansen, a veteran with over two decades in the options industry, is at the forefront of several transformative initiatives. As the Dallas site leader for OCC, the world’s largest equity derivatives clearing organization, he’s overseeing a technological revolution that promises to reshape the landscape of options trading.

My Skepticism Persists Despite BlackRock’s Larry Fink Reversing Stance, Declaring Bitcoin a Legitimate Financial Instrument

My Skepticism Persists Despite BlackRock’s Larry Fink Reversing Stance, Declaring Bitcoin a Legitimate Financial Instrument

The CoinDesk story that reported that BlackRock’s Larry Fink has declared that bitcoin is a legitimate financial instrument struck a sour note with me. It was just seven years ago, before BlackRock’s Bitcoin ETF hit $21 billion in equity since its launch in January of this year, that Fink was not a bitcoin fan. BlackRock may have $10.6 trillion in assets under management, which gives Fink headlines and gravitas, but his declaration is still just an opinion. 

In 2017, Fink, the CEO of BlackRock, had a notably different and critical view of bitcoin, describing it as “an index of money laundering.” This stance reflected a broader skepticism about the cryptocurrency, which he perceived as being associated with illicit activities.

NYSE Executive Hyde Sees Retail Surge and Regulatory Hurdles Shaping Options Market Future

NYSE Executive Hyde Sees Retail Surge and Regulatory Hurdles Shaping Options Market Future

In an interview at the Options Industry Conference in Asheville, NC, James Hyde, head of business development and strategic partnerships at NYSE Options, offered insights into the current state of the options industry. The interview, conducted by John Lothian News as part of the JLN Industry Leader video series sponsored by OCC, touched on several key topics shaping the market.

When asked about customer priorities, Hyde highlighted the growing interest in short-dated single-name options in the equity space. “The industry is clearly focused on that,” he said, noting that a wide group of stakeholders, including representatives from the Options Clearing Corporation (OCC), exchanges, and the SEC, are actively discussing the topic. 

Pin It on Pinterest

Share This Story