Paris
25 October 2016
Reporter: Drew Nicol
BNP Paribas plans repo clearing expansion
BNP Paribas Securities Services is working with central counterparties to extend its European third-party clearing services for the repo clearing of bonds to more countries.

The bank already provides this service for French, Spanish and Italian bonds.

In a statement on its ongoing and upcoming market initiatives, the bank didn’t specify which countries it is looking to include next.

BNP Paribas also clarified that its Collateral Gateways solution for banks and brokers has been upgraded in line with the newest Target2-Securities (T2S) requirements.

According to the bank, the improved functionality will allow its clients to benefit from the T2S auto-collateralisation services, along with the bank’s Collateral Gateways independently.

BNP Paribas Securities Services gives clients the option to settle their trades using their dedicated cash account in T2S.

The bank has also become a direct securities participant to the US Federal Reserve through FedLine, the Federal Reserve’s online financial services information and payment service.

This facilitates its clients’ set-up and growth in the local fixed income securities market and allows for improved settlement turnaround and reporting, as well as first-hand pre-qualified information on income events.

Direct connectivity also facilitates and protects clients’ securities margin and collateral movements.

Alain Pochet, global head of clearing, custody and settlement at BNP Paribas Securities Services, said: “Financial institutions need fast and efficient access to local fixed income markets to satisfy their need for high quality collateral. In addition, regulations are pushing investors to hold sovereign debt and corporate bonds.

“All this comes at a time when the markets are concerned with a possible shortage of government and corporate bonds.”

“As a global custodian and asset servicer, we see it as our role to help our clients secure the collateral they need and enable them to fulfil their investment strategies. That is why we are participating in a number of initiatives to give our clients direct access to local fixed income markets around the world.”

More clearing and settlement 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
Deutsche Börse engages T7 for cash
04 July 2017 | Frankfurt | Reporter: Drew Nicol
Deutsche Börse shifts cash trading onto T7 and Eurex introduces new derivative hedging tools for the buy side
New settlement netting service launches for OTC FX
03 July 2017 | London | Reporter: Stephanie Palmer
NEX Optimisation has launched its automated settlement netting service, which it calls the first of its kind in the industry
BNP Paribas welcomes four new users for US custody platform
03 July 2017 | New York | Reporter: Drew Nicol
BNP Paribas Securities Services has secured four new European online banks as clients for its US broker-to-custody platform
Access to China’s bond market formed through Tradeweb
26 June 2017 | New York | Reporter: Drew Nicol
Northbound trading will begin in the initial phase, meaning overseas investors will be able to invest in the China inter-bank bond market
Fragmentation would weaken central clearing, says Mark Carney
20 June 2017 | London | Reporter: Mark Dugdale
In a speech at a breakfast event at Mansion House in London, Carney warned against carving up London’s clearing market once the UK leaves the EU
Calastone begin phase two of blockchain PoC
13 June 2017 | London | Reporter: Drew Nicol
Calastone, the global funds transaction network, has completed the first phase of its distributed market infrastructure proof-of-concept for the trading and settlement of mutual funds
CCMA praises Canadian market participants on T+2 preparations
30 May 2017 | Toronto | Reporter: Stephanie Palmer
Keith Evans praised the country’s financial markets regulators and participants in their efforts to prepare for the move to T+2 on 5 September, designed to “further strengthen” the marketplace
More clearing and settlement news