BNP PARIBAS, CLEARSTREAM’S COLLATERAL MGMT GOES LIVE (ENG)
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News Release Deutsche Boerse Group 07.05.13
BNP Paribas and Clearstream’s collateral management collaboration goes live
* Cooperation on collateral management solution goes live with triparty fixed income and equities trade * Clearstream takes care of global collateral allocation, optimisation and exposure coverage * BNP Paribas Securities Services remains the local custodian and carries out local settlement and asset servicing * Solution enables efficient collateral management with reduced fragmentation
A collateral management service developed for customers of both Clearstream and BNP Paribas Securities Services has now launched across multiple markets and for both fixed income and equities. The live service enables mutual customers to use Clearstream’s global collateral allocation, optimisation and exposure coverage while BNP Paribas Securities Services remains the local custodian,
managing local settlement and asset servicing for its clients.
The assets used for triparty purposes are moved automatically into a Clearstream account in BNP Paribas Securities Services books, avoiding current manual cross-border processes for the clients. The first trade to go live in this cooperation involved Belgian, Italian, French and Dutch equities and also French and Dutch fixed income.
The partnership ensures customers of both institutions make optimal use of their asset pool in BNP Paribas Securities Services to use in triparty transactions managed by Clearstream within its Global Liquidity Hub. Increased efficiency in collateral management is a growing industry priority in the light of the upcoming regulatory changes requiring greater collateralisation of exposures.
Alain Pochet, Head of Clearing, Settlement and Custody at BNP Paribas Securities Services, said: “We are pleased to offer the benefits of our partnership with Clearstream to our clients. This first step – related to fixed income and equities in Belgium, France, Italy and Netherlands – will soon be extended to other markets depending on our client’s priorities. This successful cooperation is essential in a strong regulatory context where our clients need to use their collateral assets wherever they are held with BNP Paribas Securities Services. Transparency and automation are the key words of this riskless solution, bringing a reduction of operation workload to our clients, allowing them to finance assets they would not have used before.”
Launch of the service was also warmly welcomed by Stefan Lepp, Head of Global Securities Financing at Clearstream. “We’re delighted that the efficiency of this service – part of our Liquidity Hub Connect stream delivering collateral management services for agent banks – is now proven while being flexible enough to cover a number of markets and asset classes. This development with BNP Paribas Securities Services is another great example of how our Global Liquidity Hub – a multi-layered, open architecture collateral management environment – is continuing to expand in scope. Growing through smart partnerships is part of our company DNA and we are pleased to have BNP Paribas as a key market partner.”
About BNP Paribas Securities Services
BNP Paribas Securities Services, a wholly-owned subsidiary of the BNP Paribas Group, is a leading global custodian and securities services provider backed by the strength of a universal bank. It provides integrated solutions to all participants in the investment cycle including the buy-side, sell-side, corporates and issuers.
The bank has a local presence in 34 countries across five continents, effecting global coverage of more than 100 markets. It partners with clients to help overcome complexity, while offering a one-stop shop for all asset classes, both onshore and offshore, around the world.
Key figures as of 31 December 2012: USD 7,291 billion of assets under custody, USD 1,333 billion assets under administration, more than 6,979 administered
funds and 7,900 employees.
Clearstream is the post-trade services and global liquidity provider within
Deutsche Börse Group. As an international central securities depository (ICSD) headquartered in Luxembourg, Clearstream provides the post-trade infrastructure for the Eurobond market and services for securities from 53 domestic markets worldwide. Clearstream’s customers comprise approximately 2,500 financial institutions in more than 110 countries. Its services include the issuance,
settlement and custody of securities, as well as investment fund services and global securities financing. With more than EUR 11.6 trillion in assets under custody, Clearstream is one of the world’s largest settlement and custody firms for domestic and international securities. As a central securities depository (CSD) based in Frankfurt, Clearstream also provides the post-trade infrastructure for the German securities industry, offering access to a large number of markets in Europe.
Further information: www.clearstream.com
Media contact BNP Paribas Securities Services
Sarah Decottegnie, +44 20 7595 4653 email@example.com
Media contact Clearstream
Hazel Daniells, +352-243-32272 firstname.lastname@example.org
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