Brussels, Paris and London – 8 May 2014 – BNP Paribas Securities Services, a custodian with over USD 8 trillion (EUR 6 trillion) in assets under custody, and Euroclear Bank, an international CSD which safe-keeps clients’ assets worth over USD 33 trillion (EUR 24 trillion), today announce that their joint triparty collateral management service, which was introduced in Italy and Spain last year, has been extended to four new capital markets:
The service is already used by a number of investment banks and brokers. The partnership enables mutual sell-side clients to seamlessly optimise equities and fixed-income securities collateral held in both companies’ books in these six domestic markets for use in triparty transactions managed by Euroclear Bank. The securities can be returned to clients’ domestic accounts as and when required.
Frederic Hannequart, Chairman of Euroclear Bank, said: “Our partnership with BNP Paribas, which now spans six European capital markets, is part of the on-going extension of the Collateral Highway to more markets globally. The unique technology used allows for the automatic and friction-free mobilisation of both fixed income and equities collateral at a lower cost than other cross-border triparty collateral providers. Our joint customers can now take a holistic approach to collateral management and this service affords them the highest levels of cost and risk efficiencies when sourcing and allocating securities. Together with BNP Paribas, we are delivering a client-driven solution that hinges on open-source portfolio optimisation.”
Alain Pochet, head of Clearing, Custody and Settlement at BNP Paribas Securities Services, said: “Our Collateral Access – Connect service, which enables us to establish links with institutions such as Euroclear Bank while keeping our clients’ assets segregated, is an excellent example of how the industry can work together to help customers access collateral easily and efficiently. It is part of our wider Collateral Access suite of products and services, which helps our clients source securities and maximise the use of their assets.”