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
Global asset manager BlackRock has identified bringing private markets to the wealth channel as a key business area for the firm that could generate US$500 million in revenue in the future.
Flows into cash and fixed income ETFs soared in May, rising from $366 million in April to more than $1.3 billion, data from Betashares shows.
Quinbrook Infrastructure Partners has promoted its Australian head to the role of chief executive of the global investment manager.
UK-based fund manager Royal London Asset Management has appointed a Sydney-based head of regional sales as it embarks on a multiyear plan to expand its presence internationally.
