BNP Paribas Securities Services expands initial margin services
BNP Paribas Securities Services’ collateral management service is to be expanded in Asia Pacific to help firms manage their initial margin requirements arising from their non-cleared over-the-counter derivatives positions.
The expansion, the firm said, would enable financial institutions to outsource initial margin models and processes as initial margin rules aimed to mitigate counterparty risk were progressively coming into force. Waves five and six of the rules will come into force in 2021 and 2022 for institutions with non-cleared derivatives positions above €50 billion ($78.66 billion) and €8 billion.
BNP Paribas Securities Services head of product, collateral access, David Beatrix, said: “Asset owners can have a challenging time when implementing initial margin requirements due to the size of their derivative positions and the fact that they tend to operate under one single consolidated entity.
“Asset owners also tend to delegate their investment process across multiple managers, which can result in fragmented initial margin calculations leading to higher collateral requirements. Our services take the complexity out of the process, enabling asset owners to centralise their calculations and adopt a streamlined and efficient approach to initial margins implementation.”
The firm said its services included risk factors and initial margin calculations, exposure management, exchange of initial margin calls and a triparty collateral management solution with segregated custody arrangements.
Recommended for you
Perpetual has seen AUM rise 6 per cent in the last quarter but the departure of a longstanding JOHCM fund manager led to outflows of $2.2 billion from his strategy.
Global fixed income fund Bentham Global Opportunities has been added to several major platforms, enabling it to be accessed more easily by financial advisers.
Following yesterday’s news about First Sentier Investors closing four investment teams, a second global asset manager has announced it is closing its only dedicated Australian fund.
As ASIC chair Joe Longo pushes firms to prepare for the upcoming mandatory climate disclosure regime, what skills are necessary if firms are looking to expand their ESG teams?
