Baton Systems has added direct connectivity to DTCC’s Fixed Income Clearing Corporation (FICC) and National Securities Clearing Corporation (NSCC) through its Core-Collateral network. The move is aimed at supporting firms preparing for upcoming US Treasury clearing requirements and expanding Baton’s post-trade infrastructure coverage across DTCC’s central clearing services, explains Baton Systems.
The US Securities and Exchange Commission’s mandate on Treasury clearing will require central clearing of cash transactions from 31 December 2026, and repo transactions from 30 June 2027. As firms begin adjusting their operational frameworks, the need for new or expanded links to FICC is growing. Baton’s direct connection allows its clients to manage collateral at FICC through its existing Core-Collateral setup.
According to Baton, the new link is already live, with one client actively instructing movements on the platform. The integration provides access to real-time balance data and eligibility schedules for US Treasuries cleared via FICC, features aimed at improving resource allocation and collateral movement processes.
Reducing friction
DTCC’s Brian Steele, President of Clearing and Securities Services, described the new FICC link to Baton’s network as a practical step toward increasing collateral efficiency in light of the Treasury clearing mandate. While framed as a client-driven development, the move also fits into a broader industry shift toward reducing manual workarounds in collateral operations and tightening integration across clearing venues.
In parallel with the FICC integration, Baton has also added direct connectivity to NSCC, DTCC’s equity and bond clearing subsidiary. This expansion gives Baton clients further reach across the US post-trade landscape, with the goal of streamlining processes and improving liquidity visibility across asset classes.
Collateral flows
Baton’s Core-Collateral network is already used by several large Futures Commission Merchants. With the addition of FICC and NSCC, the firm is positioning its infrastructure to handle a larger share of collateral flows expected under the new clearing regime.
