BNP Paribas Securities Services Launches Collateral Access, an Integrated Collateral Management Solution


NEW YORK, NY--(Marketwired - Jun 26, 2013) -  BNP Paribas Securities Services (BNP Paribas), a global custodian with over USD 7 trillion assets under custody, boosts its collateral management solution by launching Collateral Access, a fully integrated and comprehensive offering to cater for both buy-side and sell-side clients.

Market dynamics and the search for increased transparency are pushing participants to implement a robust risk mitigation framework around collateral management. Incoming regulation, in particular EMIR and Dodd-Frank, has increased the need for collateral for all OTC derivatives, whether cleared or non-cleared. The new liquidity standards of Basel III will also affect future demand for High Quality Liquid Assets.

Patrick Colle, CEO at BNP Paribas Securities Services, said: "Providing a solution to mitigate counterparty risk remains at the heart of customers' requirements. But our clients expect even more than that from their custodian. Optimisation and protection of collateral are becoming critical decision factors; whether long or short, clients want to be able to maximise the use of their assets. Those in need of collateral must best allocate their limited resources or effectively source eligible assets.

"Protection of the collateral portfolio is also a key concern. As a custodian with Global SIFI status and a unique combination of buy- and sell-side clients in our books, we are naturally best placed to safe keep, optimise and transform clients' collateral."

Hélène Virello, Head of Collateral Management at BNP Paribas Securities Services, added: "We are seeing increasing demand from clients to support them with a solution through the entire transaction process - from trade capture to reporting, including liquidity solutions. Collateral Access allows our clients to be fully compliant with new regulations through limited investments and within a short timeframe. We work with an open model, interfaced with multiple counterparties, clearers, custodians and market infrastructures. It has been carefully designed to address the challenges facing the industry in the years to come. Collateral Access comprises a set of modules available on a standalone basis or together with BNP Paribas Securities Services' existing products." 

To address these market concerns, BNP Paribas has positioned the topic as a key strategic initiative across its business lines and reinforced its offering under the umbrella name of Collateral Access. This solution is fully integrated and can be tailored to client needs. It comprises three pillars:

  • Efficient Risk Mitigation: aiming at actively managing counterparty risk, it relies on robust trade management for all instruments (including both cleared and non cleared derivatives), independent portfolio valuation, margin and dispute management -- all supported by industry leading platforms.
  • Optimisation and transformation: providing margin requirement simulation, it helps optimise collateral allocation and take advantage of financing solutions or lending opportunities.
  • Protection and velocity: ensuring safekeeping and segregation of collateral, it provides connectivity to market infrastructures and an innovative settlement set-up, to reduce liquidity friction between counterparties.

About BNP Paribas

BNP Paribas (www.bnpparibas.com) has a presence in 80 countries with nearly 200,000 employees, including more than 150,000 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 Mediterranean basin countries, in Turkey, in Eastern Europe and 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.

About BNP Paribas Securities Services

BNP Paribas Securities Services, a wholly-owned subsidiary of the BNP Paribas Group, is a leading global custodian and securities services provider backed by the strength of a universal bank. It provides integrated solutions to all participants in the investment cycle including the buy-side, sell-side, corporates and issuers.

Covering over 100 markets, with our own offices in 34 countries, the BNP Paribas network is one of the most extensive in the industry. We bring together local insight and a global network to enable clients to maximize their market and investment opportunities worldwide.

Key figures as of 31 March 2013: USD 7,113 billion assets under custody, USD 1,314 billion assets under administration, 6,979 administered funds and 7,900 employees

BNP Paribas Securities Services is a société en commandite par actions (partnership limited by shares) incorporated in France, with limited partners with limited liability and one general partner with unlimited liability, with its registered office at 3, rue d'Antin - 75002 PARIS - Paris Trade Register B552 108 011 RCS.

BNP Paribas Securities Services is authorised and supervised by the Autorité de Contrôle Prudentiel (ACP) and by the Autorité des Marchés Financiers (AMF). BNP Paribas Securities Services London branch is authorised by and subject to limited regulation by the Financial Services Authority for the conduct of its investment business in the United Kingdom; details on the extent of our regulation by the Financial Services Authority are available from us on request. BNP Paribas Securities Services London Branch is also a member of the London Stock Exchange. BNP Paribas Trust Corporation UK Limited and Investment Fund Services Limited are authorised and regulated by the Financial Services Authority.BNP Paribas Securities Services, London Branch is registered in England and Wales under No. FC023666.

The services described in this document, if offered in the U.S., are offered through BNP Paribas and its subsidiaries and affiliates. Securities products are offered through BNP Paribas Securities Corp., a subsidiary of BNP Paribas, a broker-dealer registered with the Securities and Exchange Commission and a member of SIPC, the Financial Industry Regulatory Authority, the New York Stock Exchange and other principal exchanges.