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
Six months after scrapping its planned deal with KKR, Perpetual is yet to make significant headway on the sale of its wealth management division but is focusing on alternatives for product development.
Platinum Asset Management’s NPAT has fallen by 89 per cent in FY25, with the firm confirming that it will be renamed as L1 Group following the expected completion of its merger with L1 Capital.
Statutory NPAT at Pacific Current has almost halved in FY25 to $58.2 million as the result of an investment restructure.
Being able to provide certainty about redemptions is worth fund managers pursuing when targeting the retail market even if it means sacrificing returns, according to Federation Asset Management.
