FIA Tech, which provides fintech solutions for the futures industry, has selected post-trade service provider Baton Systems, to accelerate brokerage payments and shorten the settlement cycle for its customers.
Historically, futures brokers have been burdened by long collection periods, increased costs and write-offs with disparate and error-prone processes across the global network of futures exchanges, clearing and executing brokers, says FIA Tech, which notes that it currently processes brokerage over its Atlantis platform for 46 global firms in 17 currencies.
The results have been faster and more accurate brokerage invoicing; however, Atlantis relies on traditional payments technologies, meaning that final payments are exchanged 25-50 days from trades being executed. But by integrating Baton’s technology, payments will be accelerated, and settlement cycles will be faster and more frequent. Baton will integrate into Atlantis via secure APIs and ultimately provide FIA Tech and users of Atlantis with improved transparency into the payment process.
“FIA Tech’s initiatives have greatly benefited the futures market and progressed the entire brokerage process from documentation through invoicing and reconciliations,” says Andres Choussy, president and COO of Baton. “Baton was selected to take this even further with our technology, which is helping to fully automate the movement of assets across the financial system.”
“While Atlantis has brought brokerage processing into a continuous and highly automated operation for our customers, the final settlement and payment processes were lagging the new speed of the industry and subject to exceptions and breaks,” adds Nick Solinger, president and CEO of FIA Tech. “Working with Baton allows us to easily and seamlessly accelerate payments with precision and greater controls across our network of participants. We are very excited to launch this collaboration with Baton.”
Longer term, the collaboration will enable FIA Tech customers to monitor completed payment cycles, payments in progress, or scheduled payments using the combined solution. This will also allow for more robust exception handling in case of failed payments, the group says.