Euroclear announced that BNP Paribas’ Securities Services business has connected to Euroclear’s Collateral Allocation Interface (CAI) as triparty agent, joining BNY, J.P. Morgan, and Clearstream Banking.
The tool allows collateral givers to transfer collateral to other triparty agents to cover exposures with counterparties that have accounts with those triparty agents and not in Euroclear Bank. It also automatically recalls the securities as soon as they are required for settlement in Euroclear Bank. Therefore it prevents fails even if securities are initially located outside Euroclear Bank, explained Marije Verhelst, head of Business Development for Securities Lending & Collateral Management at Euroclear in an interview.
“Collaboration and interoperability with other triparty agents provide greater flexibility and more trading options by allowing you to seamlessly, and securely, move collateral in and out of the Euroclear system,” according to a post on Linked In.