BNP Paribas Securities Services today announced that it will extend its collateral management service to include centrally-cleared over-thecounter (OTC) derivatives introduced by new regulation, helping institutional investors reduce the associated costs and complexities.
Institutional investors have historically been used to dealing with “normal” noncentrally cleared OTCs. However, the introduction of the Dodd-Frank Act in the US and European Market Infrastructures Regulation is set to drive a significant amount of OTCs onto electronic platforms and cleared by central counterparties.
Delivered via a real-time view of both centrally and bi-laterally cleared trades, BNP Paribas’ service helps institutional investors manage both collateral and risk measurement across multiple counterparties – dealers, clearers and central counterparties – and changing eligibility requirements.
Commenting on the development, Helene Virello, Head of collateral management at BNP Paribas Securities Services said “The new regulatory environment, while undoubtedly the best thing for our clients and the longevity of the financial markets, is still viewed with some trepidation by many in the industry.
“Indeed the changing environment does present a challenge to some market participants who are not best equipped to deal with certain changes, but that is where BNP Paribas can help its clients get ahead of the competition.
“Centrally-cleared OTC derivatives is one such area and institutional investors – for all their expertise in using OTC products – have simply never had to deal with clearing them centrally,” continued Helene, who is also in charge of OTC independent valuation services at the bank.
“We are delighted to simplify the clearing process on our clients’ behalf – a critical factor in helping them avoid the associated funding costs and increased complexities, ultimately allowing them to concentrate on their core business activities,” Helene concluded.
The service will be fully operational in Q1 2012.
About BNP Paribas
BNP Paribas (www.bnpparibas.com) is one of the strongest banks in the world*. The Group has a presence in more
than 80 countries and more than 200,000 employees, including more than 160,000 in Europe. It ranks highly in its
three core activities: Retail Banking, Investment Solutions and Corporate & Investment Banking. In Europe, the Group
has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is the leader in
consumer lending. BNP Paribas is rolling out its integrated retail banking model across the Europe-Mediterranean
zone and boasts a large network in the western part of the United States. In its Corporate & Investment Banking and
Investment Solutions activities, BNP Paribas also enjoys top positions in Europe, a strong presence in the Americas and
solid and fast-growing businesses in Asia.
*Rated AA by Standard & Poor’s i.e. 3rd rating level on a scale of 22.
About BNP Paribas Securities Services
BNP Paribas Securities Services is a wholly-owned subsidiary of the BNP Paribas Group, delivering flexibility and
commitment, backed by the strength of a leading universal bank.
Operating across the investment cycle, we provide post-trade administration solutions to buy-side and sell-side
financial institutions and issuers. The Bank has a local presence across 32 countries and global coverage of over 100
markets, offering a one-stop shop for all asset classes, both onshore and offshore, across the globe.
With USD 6,975 billion of assets under custody, USD 1,244 billion assets under administration and more than 6,600
funds administered as at 30 June 2011, BNP Paribas Securities Services is a top five global provider of securities
(*) Source: BNP Paribas securities Services Globalcustody.net competitors’
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