To encourage new ideas and a spirit of initiative among its staff, the BNP Paribas Group has...
BNP Paribas Securities Services: Optimal asset custody
In the face of cybersecurity risks, new technologies and the internationalization of trade, investors’ assets need security and fluidity more than ever before. This is exactly the mission of BNP Paribas Securities Services—the BNP Paribas Group subsidiary specialized in multi-asset services. Learn more about the function and its ecosystem.
A long-term partner for financial institutions
BNP Paribas Securities Services, a 100% subsidiary of BNP Paribas, guarantees the storage and protection of the assets of its clients, whether these are banks, financial institutions or large companies. As a specialist in multiple asset classes (stocks, bonds, derivatives, currencies, real estate and raw materials), it oversees the operational processing of transactions at every step of the investment cycle, guaranteeing continuity and security. It also keeps accounts of the financial assets that it has been entrusted with, throughout their life cycle and in all countries where investments are made. Covering more than 90 markets across the world, Securities Services allows its clients to reach their cross-border investment and distribution goals for all asset classes.
In its efforts to become the world’s leading provider of asset servicing for large financial institutions, the subsidiary is pursuing its geographic expansion with:
- The acquisition, in April 2018, of the American mutual funds administration platform Janus Henderson, making BNP Paribas Securities Services the eighth largest funds administrator in the United States.
- The announcement that German firm DWS will transfer its funds administration activities to BNP Paribas Securities Services, allowing Securities Services to reinforce its presence in Germany and Luxembourg. This represents the largest funds administration mandate in the history of the industry (240 billion euros).
The activities of BNP Paribas Securities Services are perfectly integrated within the strategy of BNP Paribas Corporate & Institutional Banking (CIB), the global branch of the investment bank of BNP Paribas. They are also essential to the development of a lasting relationship between the Group and its major institutional clients.
Market service provisions
BNP Paribas Securities Services offers six major categories of services to its institutional clients, banks, brokers and issuers:
- Custody of their securities and processing of market-negotiated transactions.
- Administration of their assets and performance monitoring (accounting, value creation, regulatory reporting, support for fund distribution, performance and risk analysis, investment reporting).
- Securing market transactions linked to equity operations, with an offer of services dedicated to facilitate financing, exchange rate services, and the management of collateral and negotiations on orders.
- Support in issuing debt on capital markets
- Assistance for large enterprises in managing relations with their shareholders via the administration of shareholders' meetings and remuneration plans for their employees.
- Management of all or some of their middle- and back-office operations.
Digital leadership in client services
BNP Paribas Securities Services is involved in a vast digital transformation program that aims to improve the experience of its clients and its staff, industrialize its processes and develop the services of tomorrow. BNP Paribas Securities Services centers its innovation around the use of blockchain, smart data and the potential of artificial intelligence. To this end, in 2017, the subsidiary launched its triparty collateral management service, to allow its clients to monitor their collateral needs in real time and to anticipate the allocation of their assets. Using the latest digital technologies and its vast custody network enabled BNP Paribas Securities Services to become the first to enter this market in 15 years. BNP Paribas Securities Services is investing in co-creation and innovation with its clients and partners, and in the development of collaborators’ skills with new ways of working.
For example, the subsidiary is currently developing PlanetFunds, a latest-generation platform for the distribution of digital funds using blockchain technology, smart contracts and big data, in order to offer its clients a funds-distribution chain that is optimized from end to end. PlanetFunds will also provide a complete digital solution, allowing for the acceleration of the investor-onboarding process, and to make it easier to share fund-relevant information. In addition, powerful analysis tools will help fund-management clients to refine their distribution. BNP Paribas Securities Services is co-developing PlanetFunds with its clients to ensure that it responds to their needs and expectations.
Finally, Securities Services has just opened its Grands Moulins Lab at its Pantin offices. The Lab is a modular space that encourages creativity, collaboration and exchange with startups, FinTechs and experts. Through agile approaches, disruptive tools and innovative methods, the Lab makes an innovation ecosystem available to all collaborators.
- Custodian of the Year (Custody Risk Global Awards 2017 & 2018)
- Best global custodian in Asia-Pacific (Asia Asset Management Best of the Best Awards 2018)
- European Custodian of the Year (Funds Europe Awards 2017)
Photos : header ©Dabarti // ©metamorworks // ©SFIO CRACHO
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