London
05 October 2017
Reporter: Drew Nicol

BNP Paribas wades into collateral pools with triparty service


BNP Paribas Securities Services has launched a triparty collateral management service to unlock liquidity pools.

As a triparty collateral agent, BNP Paribas Securities Services handles its clients’ collateral needs, from net exposure calculation, automatic collateral allocation and substitution, to physical settlement and custody of these assets.

According to BNP Paribas, the service also offers users the ability to provide access to segregated markets, therefore enabling clients to access previously untapped sources of collateral.

In a briefing on the new service a spokesperson for the bank highlighted that, as a global and local custodian, BNP Paribas Securities Services is able to give clients the opportunity to source collateral directly on the domestic markets in which they invest, therefore alleviating the burden of constant collateral inventory management.

The service is available for for all asset classes and all types of collateralised trades, and complements BNP Paribas’ existing range of collateral management services.

Patrick Colle, general manager of BNP Paribas Securities Services, said: “BNP Paribas Securities Services has a strong and diversified client base, which puts us in an ideal position to ease the circulation of collateral between buy and sell-side market participants as well as central clearing counterparties—something that few collateral platforms do today.”

“Our objective is to create a community of collateral takers and collateral givers to develop a comprehensive pool of liquidity and remove bottlenecks in the sourcing of collateral.”

Hélène Virello, global head of collateral and valuation services, at BNP Paribas Securities Services, said: “We have worked closely with our clients to build a comprehensive service that enables them to manage their collateral easily and efficiently.”

“Our solution makes the most of our extensive custody network to enable us to mobilise collateral quickly and securely, when and where it is needed.”

“The service uses the latest technology and flexible algorithms to enable clients to monitor their collateral needs in real time thanks to intuitive dashboards, anticipate their future funding requirements, and set parameters based on specific allocation strategy requirements.”

More news
The latest news from Asset Servicing Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
FS-ISAC enables safer financial data sharing with API
20 February 2018 | Virginia | Reporter: Jenna Lomax
The introduction of the new API supports enhancements to secure financial data transfer including improvements in speed and error reduction
Around half in the industry have seen no real effect of Brexit, according to Augentius’ annual global survey
SETL welcomes new shareholders and new board member
20 February 2018 | London | Reporter: Jenna Lomax
SETL was launched in July 2015 to deploy a payment and settlements infrastructure based on blockchain technology
Euroclear reports strong 2017 operating performance
19 February 2018 | Brussels | Reporter: Jenna Lomax
Euroclear’s fund assets under custody grew 13 percent as Euroclear continued to utilise its international exchange traded funds model
Minium, IBM and Promontory release joint white paper
19 February 2018 | London | Reporter: Jenna Lomax
The white paper says business should explore new geographies refocus on new businesses and invest in new technologies
Kane LPI appoints new head of LPI fund administration
19 February 2018 | Bermuda | Reporter: Jenna Lomax
Alain Fournier will be responsible for the management of the life, pension and investment division
Ricky Maloney rejoins Eurex
19 February 2018 | London | Reporter: Jenna Lomax
He previously worked at Eurex from 2013 to 2016 as head of OTC clearing sales and relationship management
More news