Yesterday California-based Baton Systems announced that its platform now natively supports ISDA’s Common Domain Model (CDM) for derivatives. The US company provides post-trade and payment solutions for financial institutions using distributed ledger technologies (DLT). The new CDM standard specifies common data structures and processes for derivatives.
The standard aims to encourage interoperability and consistency between firms and platforms. Last month at a Barclays-hosted hackathon in New York and London, numerous organizations tried out the CDM standard, and Baton won the prize for the best overall solution in New York.
Baton says it enables their clients to quickly connect existing swaps and derivatives systems to the Baton platform. Their platform can execute smart contracts for common trade events including amends, novation, clearing, margining and settlement.
“By introducing common standards, ISDA is providing the toolkit to enable broader digitization. This will shape what is possible in the world of derivatives, not just months ahead, but many years into the future,” said Arjun Jayaram, CEO and Founder of Baton.
“We need rapid and universal deployment of this important industry standard, which will enable all firms to effectively speak the same language in the derivatives market,” said Scott O’Malia, ISDA’s Chief Executive.
Baton has deployed its platform to multiple global banks for settlement of margin collateral and foreign exchange using conventional bank accounts.