BNP Paribas Securities Services is working with financial messaging service provider, Swift, to enhances its collateral protection offering for corporate, buy-side and sell-side clients.
The bank is working with Swift to integrate the latter’s standardised messages in its ‘Margin Protect’ service, which supports full compliance with impending regulatory requirements on OTC transactions, mitigation of counterparty risk, asset safety and cash reinvestment facilities, which will help to support tri-party collateral flows, says the bank.
The ‘Margin Protect’ service will also provide straightforward and more efficient management of all securities collateral operations, from instruction to substitution and monitoring.
Head of clearing settlement and custody products at BNPP, Philippe Ruault, says, “The more stringent requirements and the expected increase in volumes of collateral exchanged will make it difficult for firms to cope with a manual process still largely reliant on fax and emails. The combination of our robust and efficient custody model with Swift’s secure messaging services supporting collateral management will benefit clients as it ensures collateral safety through a simplified access to account control arrangements.”
Collateral protection has increased in importance for market participants and regulators as the implementation of Dodd-Frank and EMIR regulations near.
Hélène Virello, head of collateral management at BNPP, says, “’Margin Protect’ is part of Collateral Access, BNP Paribas’ comprehensive set of collateral management solutions, encompassing collateral management, sourcing, financing and protection. All services are modular, yet integrated within the bank’s custody offer and are offered in the US, Europe and Asia across all client segments.”