BNP Paribas Securities Services has announced that it has been selected to provide custody services via its New York affiliate branch (“BNP Paribas”) to CME Clearing, the clearing division of CME Inc.
BNP Paribas is now one of CME Clearing’s approved custodians for US Treasury and federal agency securities. This means that CME clearing members now have an additional option to diversify their holdings of performance bond deposits, which are used for margin collateral.
As a direct securities participant to the Federal Reserve in the US, BNP Paribas will help CME Clearing and its members enhance operational efficiency, as Fed-eligible securities are the main asset class for performance bond collateral.
Bruno Campenon, Americas Head of Custody and Clearing Services for BNP Paribas Securities Services, said: “We are delighted to add such a prestigious customer to our US client base. This is testament to the work we have been doing since launching custody in the US in 2012.”
Sunil Cutinho, President, CME Clearing, said: “We’re pleased to welcome BNP Paribas as a custodian in the United States. With the addition of BNP Paribas, CME Group provides greater diversity of custodians to our global clearing members and clients to support their collateral management needs at CME Clearing.”