Delivered through a single point of contact, BNP Paribas' solution enables access to robust settlement, clearing and custody services in more than 100 countries, meaning clients benefit from smoother instruction, reporting and reconciliation processes, and faster on-boarding.
Establishing proximity in new markets is key to financial intermediaries wanting to grow their trading activities and capture new business. Yet building the requisite critical mass introduces rising settlement and custody costs by complicating cash management and on-boarding requirements, and the added costs of working with more local agents in each market.
The service also incorporates collateral management which – critically – will improve clients' liquidity and their capital usage. By having a full view of clients' operations, the bank is able to closely evaluate their collateral requirements and recommend – more accurately than ever – the exact amount of collateral required.
Commenting on the development, Philippe Ruault, Head of clearing, settlement and custody products at BNP Paribas Securities Services said “In the current climate, the number one concern for financial intermediaries is maintaining their volumes and margins – so anything which can actually boost growth is in very strong demand right now.”
“Our solution removes virtually all of the complexity involved with implementing and managing moves into new markets, thus enabling banks and brokers to react quickly to business opportunities in new territories,” added Eric Roussel, Head of trade and market services at BNP Paribas Securities Services.
“With this critical aspect of their post-trade infrastructure under our management, clients can focus their efforts on their core business activities,” continued Mr. Roussel.
BNP Paribas' client service model is fully customisable, and designed to deliver global reach with local expertise in each market. The platform's open architecture enables it to interface with client accounts held with ICSDs or other sub-agents, maximising IT and operational efficiencies across clients' networks. The solution also benefits from automatic cross-borders to reduce the number of trade failures and buy-ins.
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 services*.
(*) Source: BNP Paribas securities Services Globalcustody.net competitors' AuC tables.