Real-time Payment Control Across Settlements

Core-Payments® : Control outgoing payments, settlement activity and intraday liquidity risk

Proven and being used in production by a tier 1 bank

Outgoing Payment Control

Effective payment control is critical to reducing settlement risk, optimising liquidity use and supporting business growth. Yet siloed, fragmented data and manual processes often lead to settlements driven by queue order rather than safety or optimisation – increasing payment, liquidity and settlement risks.

Core-Payments® enables institutions to achieve real-time control over the release of payment instructions using enterprise-wide payments intelligence and detailed historical insights to power smart, automated, rule-driven workflows.

The result: Safer settlement, improved operational resilience, and smarter funding decisions at scale.

Payment control across settlement flows powered by real-time insight

• Real-time monitoring of funding balances, available liquidity, inbound payments and outstanding obligations for effective data-driven decision making
• Automated, real-time payment matching software for increased position accuracy (reconciling statements vs ledgers)
• Orchestrate automated, optimised and conditional settlements powered by smart payment sequencing
• Drill down to trace granular, time-stamped historical transaction data for quicker identification of an issue’s root causes
• Automated, configurable netting and pre-settlement affirmation increasing efficiency and reducing risk
• Real-time settlement risk exposure metrics alongside current and forecast funding requirements to support proactive decision-making
• Configurable alerts and early warning indicators enabling automated, faster issue escalation and investigation
• Programmable and configurable, instant firm-wide hold and release payment controls

Conditional release of payment instructions for controlled settlements

Core-Payments® gives institutions precise control over when payment instructions are released through configurable, rule-driven settlement logic.

Payments can be automatically held and sequenced, and only released when defined conditions are met – including counterparty fulfilment, real-time exposure limits, funding availability and settlement dependencies.

To further strengthen settlement control, Baton also supports the intelligent earmarking of funds. Treasury and operations teams can bulk reserve liquidity and apply explicit release conditions, ensuring funds remain reserved until requirements are met. This provides a standardised, risk-controlled mechanism to manage complex payment dependencies, and sophisticated funding and settlement strategies, across correspondent banking networks, central bank accounts and digital money infrastructures where balance reservation is supported.

Key Capabilities:

• Configurable payment hold and release rules: Set granular rules governing the controlled release of outbound payments
• Conditional settlement logic: Automatically release payment instructions only when operational process, counterparty risk parameters and liquidity funding thresholds are respected
• **Intelligent earmarking of liquidity: Reserve funds at the account-servicing institution and manage settlement dependencies across correspondent, central bank, and digital money infrastructures
• Smart payment sequencing: Optimise payment timings and order to improve capital efficiency while maintaining settlement control

Atomic Delivery versus Payment (DvP) across cash and asset ledgers

Baton enables atomic DvP settlement by synchronising the conditional movement of cash and securities across independent ledgers.

Both legs of a transaction are coordinated so that an asset is delivered only when the corresponding cash leg is secured and ready for release. This provides both parties with full transparency of a settlement process that eliminates settlement risk.

Baton is able to support atomic exchange across custody platforms, CSDs, correspondent banks and tokenised asset networks – improving collateral and margin mobility.

Key Capabilities:

• Atomic DvP coordination across cash and securities: Synchronise both legs of settlement to ensure delivery occurs only if and when payment is secured
• Eliminate settlement risk: Avoid settlement fails with settlement process that provides the transacting parties with full transparency
• **Improved collateral and margin mobility: Confidently mobilise assets intraday
• **Support for future-state digital securities markets: Enable atomic settlement using tokenised deposits, CBDCs and other forms of programmable cash

Core-Payments: The Benefits of Real-time Insight and Payment Control

Real-Time Payment Oversight: Enterprise-wide

Achieve unparalleled, real-time visibility of all payment and settlement flows across business silos. Consolidate data from siloed systems into one enterprise-wide view, empowering your team to make informed decisions with precision. Monitor funding balances, counterparty exposures, obligations, and liquidity through intuitive, role-specific dashboards.

Features:

• Real-time data aggregation and normalisation
• Real-time, comprehensive payment state tracking
• Customisable role-based dashboards

Reduce Intraday Funding Costs

Cut intraday funding costs with fully automated release of payments based on real-time payment matching and liquidity visibility, based on your own configurations that can be tested through in-built simulation capabilities. Furthermore, enhanced automated netting capabilities ensure smarter management of balances and improved overall performance.

Highlights:

• Automated real-time payment matching tools for better balance visibility.
• Optimised netting to improve payment timing.
• Reduced idle liquidity and funding needs.
• Smarter payment orchestration for greater efficiency.

Improve Risk Management: Payment and Operational

Automate workflows to reduce operational and payment risks with real-time anomaly detection and rule-based configurable payment controls to hold and release payments during periods of market stress. Be alerted to early warning indicators such as historic pattern deviations and trace the complete lineage of individual payments or exposures, drilling down into time-stamped transaction details to identify the issue’s root cause.

Benefits:

• Real-time alerts for delayed or failed payments
• Automated execution of low-code configurable payment hold/release rules
• Quicker issue root cause identification

Increase Intraday Liquidity Resilience

Monitor all liquidity positions in real time, accurately forecast and plan for intraday liquidity demands, more effectively meet payment obligations, prioritise outflows and increase financial resiliency even in volatile markets and stressed conditions.

Capabilities:

• Real-Time, enterprise-wide liquidity visibility
• Precision forecasting tools
• Configurable stress testing for higher financial resilience

Reduce Settlement Risk

Reduce settlement risk with automated controls that govern settlement activity and counterparty exposure. Apply Payment-on-Payment (PoP) settlement for selected counterparties to avoid paying away ahead of the corresponding payment being received in non-PvP environments, thereby managing settlement risk. Further manage counterparty risk through real-time exposure monitoring and enforced risk limits across settlement activity.

Highlights:

• Apply Payment-on-Payment (PoP) settlement for selected counterparties
• Enforce counterparty risk limits across settlement activity
• Monitor real-time counterparty exposure and intraday positions
• Automated, context-sensitive alerts for potential or actual failed settlements

Increase Operational Efficiencies

Replace manual processes with smart automated workflows delivering improved accuracy, consistency and efficiency. Real-time validation ensures compliance, while automated payment netting, affirmations, and settlement splitting reduce costs and processing times. Create a scalable, reliable framework that boosts trust and system integrity.

Capabilities:

• Replace manual processes with automated, intelligent workflows
• Streamline and automate netting, affirmations and settlement splitting processes
• Build resilient and adaptable payment operations