05 October 2017
London
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.”

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