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BNP Paribas Securities Services launches new tri-party collateral management service

First Published 6th October 2017

BNP Paribas Securities Services is introducing a tri-party collateral management service that connects collateral takers and collateral givers and helps unlock liquidity pools

The move comes as new regulations and practices require market participants to collateralise their financing and OTC derivative trades to manage counterparty risk. This is prompting market participants to look for collateral management solutions, which enable them to mobilise their assets and use a wider range of securities to back up their trades.

As a tri-party collateral agent, BNP Paribas Securities Services handles its clients' collateral needs, from net exposure calculation, automatic collateral allocation and substitution, to physical settlement and custody of these assets. The service also provides access to segregated markets, enabling clients to access previously untapped sources of collateral.

As a global and local custodian BNP Paribas Securities Services enables clients to source collateral directly on the domestic markets in which they invest, therefore alleviating the burden of constant collateral inventory management.