BNP Paribas Securities Services and Euroclear extend partnership on Euroclear’s Collateral Highway to four new markets
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 Netherlands
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.”
Note to editors
About BNP Paribas Securities Services
BNP Paribas Securities Services (http://securities.bnpparibas.com), 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.
Covering over 100 markets, with our own offices in 34 countries, the BNP Paribas network is one of the most extensive in the industry. We bring together local insight and a global network to enable clients to maximize their market and investment opportunities worldwide.
Key figures as of 31 December 2013: USD 8,055 billion assets under custody, USD 1,442 billion assets under administration, 7,067 administered funds and 8,225 employees.
Euroclear is one of the world's largest providers of domestic and cross-border settlement and related services for bond, equity, ETF and other mutual fund transactions with offices in 15 countries across the globe and links to 46 international markets.
Euroclear is a proven, resilient capital market infrastructure committed to delivering risk-mitigation, automation and efficiency at scale for its global client franchise which includes over 100 central banks and supranationals.
The Euroclear group includes Euroclear Bank, which is consistently rated AA+ by Fitch Ratings and AA by Standard & Poor’s, as well as Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden and Euroclear UK & Ireland. The group settled the equivalent of EUR 572 trillion in securities transactions in 2013 representing 170 million domestic and cross-border transactions, and held over EUR 24.2 trillion in assets for clients.