BNP Paribas Securities Services, a global custodian with USD 8.7 trillion in assets under custody, today announced a significant new mandate in Asia Pacific with Liquidnet, the leading global institutional trading network. From December 2014, the custodian bank will provide Liquidnet with a comprehensive suite of back office services including; third party clearing, settlement and assistance with the records keeping process.
Liquidnet connects over 770 of the world’s top asset managers to source investment opportunities in block size across 43 markets globally. The firm selected BNP Paribas’ back office functions to support its growing equity trading business in the region. The move also reduces manual processes and risk in its broker confirmation and custody processes.
As part of the mandate, BNP Paribas Securities Services will handle Liquidnet’s post trade activity in Hong Kong. The bank will also provide Liquidnet with US broker dealer services via its BNP Paribas Prime Brokerage Inc subsidiary. This complements the Asia-Pacific service by ensuring adequate compliance with the Securities and Exchange Commission rules when processing transactions related to Liquidnet’s US customers.
The mandate was awarded to BNP Paribas Securities Services based on the strength and flexibility of its custody and third party clearing solutions in Asia Pacific and the US.
Andrew Walton, Chief Operating Officer of Liquidnet Asia Pacific, commented: “We are excited to announce our partnership with BNP Paribas Securities Services. Through their offering, we are able to further improve operational efficiency and provide a smooth flow of post-trade processes and reporting to our clients in Asia under US regulations. Liquidnet, with the help of BNP Paribas Securities Services, will be able to focus on our core business, which is connecting global investment managers to source block size liquidity opportunities across markets and continents.”
James O’Sullivan, head of client development, banks and broker dealers, BNP Paribas Securities Services Hong Kong, commented: “We are pleased to be partnering with Liquidnet as they build scale and sustainability across the globe.
“We are seeing more and more organisations in Hong Kong and Singapore partnering with specialist post trade service providers when expanding abroad and when adapting to international regulations such as derivatives clearing, trade reporting and new capital requirements.”
 Clearing: the maintenance of records of mutual positions in the exchange of cash and securities between counterparties