BNP Paribas Securities Services has become a direct securities participant of the US Federal Reserve and the Peruvian central securities depository (CSD), improving its custody services in both markets.
BNP Paribas clients will connect to the Fed through its online financial services information and payment service FedLine, a move that completes the bank’s connectivity to the US market.
The connection will support client set-up and growth in the local fixed-income securities market, improving settlement turnaround and offering first-hand pre-qualified information in income events.
It should also offer better protection for clients’ securities margin and collateral movements.
Bruno Campenon, head of custody and clearing services for the Americas at BNP Paribas Securities Services, said: “This demonstrates once again our commitment to the US market and will benefit all our client segments.”
BNP Paribas will connect to the Fed through Torstone Technology’s Inferno platform, which will provide the operational support required to gain access to FedLine as a local custodian of Fed-issued securities.
Brian Collings, CEO of Torstone Technology, said: “We are pleased to be able to offer FedLine reporting connectivity to BNP Paribas, helping them to enhance their corporate action and settlement activities.”
BNP Paribas Securities Services has also become a direct participant of the Peruvian CSD CAVALI and launched local custody and clearing services in Peru.
This means BNP Paribas now has 26 markets in its local proprietary network.
CAVALI CEO Víctor Sánchez suggested that the move could contribute to the development of the Peruvian market. He said: “BNP Paribas brings its wealth of international experience and will help further promote the growth of our financial market.”
Alvaro Camuñas, head of BNP Paribas Securities Services in Spain and Latin America, said: “We are committed to the Latin American region where we have been expanding our network and developing a strong local know-how. Peru is an exciting addition to our global network and we look forward to continuing to partner with our clients in the region.”
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