BNP Paribas Securities Services is introducing a tri-party collateral management service that connects collateral takers and collateral givers and helps unlock liquidity pools.
The move comes as new regulations and practices require market participants to collateralise their financing and OTC derivative trades to manage counterparty risk. This is prompting market participants to look for sophisticated collateral management solutions, which enable them to mobilise their assets quickly and use a wider range of securities to back up their trades.
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. “