Baton Systems, a high speed payments infrastructure provider, will offer settlement and payment services to financial institutions through NEX Infinity. Baton and NEX Optimisation are offering post-trade solutions for FX spot transactions. Baton's pitch is moving money between two bank accounts in around three minutes, reducing the need for pre-funding or paying overdraft costs that are often needed to support an FX transaction. The pair have been working with a multinational bank client on the service.
The company’s founder and CEO Arjun Jayaram is now planning the next service that he will put on the platform.
"Our next product to move onto NEX Infinity will be collateral versus cash, targeted at large banks and CCPs," said Jayaram. "It will synchronise the movement of assets like bonds on the one side while allowing the counterparty to receive cash on the other."
Senior executives’ ambition for NEX Infinity has long included the ability to connect third-party service providers, who will pay for access, onto the platform. Jenny Knott, who resigned as CEO of NEX Optimisation this week, has compared the set up to Amazon’s online marketplace.
“We see a fragmented industry with little interoperability, and with an increased cost of operation to end users,” said Andrés Choussy, head of trade and portfolio management at NEX Optimisation. “We are looking to collaborate with attractive solution providers that are good at what they do and that need partnerships to access a broader market to grow.”
