FIA Tech, a leading provider of financial technology solutions for the futures industry, has selected Baton Systems (“Baton”), a provider of post-trade solutions for capital markets, to accelerate brokerage payments and shorten the settlement cycle for FIA Tech’s customers, which will benefit from faster time to revenue.
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. Over the past four years, FIA Tech and customers have addressed many of these challenges with the Atlantis brokerage platform, which today processes brokerage 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. Integrating Baton’s technology will now allow the industry to accelerate payments with faster and more frequent settlement cycles. To achieve these benefits for the industry, Baton will integrate into FIA Tech’s Atlantis platform via secure APIs and ultimately provide FIA Tech and users of Atlantis 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,” said Andres Choussy, President and COO of Baton Systems. “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.” said 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.