Agreement creates a single collateral pool.
BNP Paribas Securities Services and Clearstream have signed a letter of intent to intensify their cooperation on collateral management.
Clearstream has introduced its new service for agent banks, Liquidity Hub Connect, which will allow BNP Paribas customers to cover exposures from a single pool of collateral. Client portfolios will remain with BNP Paribas' custody network, while Clearstream's engine automatically allocates, optimizes and substitutes collateral across the bank's book.
"We are committed to providing our clients with maximum flexibility to manage their collateral requirements across key markets while delivering bespoke domestic and global settlement and custody services," says Alain Pochet, head of clearing, settlement and custody at BNP Paribas Securities Services. "Strategic partnerships, such as this first one with Clearstream, complement perfectly our collateral management offer as bilateral agent for buy side and sell side institutions."
More from Sell Side Technology
Updating your subscription status
Winner's Announced: Sell-Side Technology Awards 2014
The winners of the 2nd annual Sell-Side Technology Awards 2014 were announced in New York on April 15. These awards recognize the leading technologies and third-party vendors in their area of expertise, through an auditable and transparent methodology. To view the winners across the 24 categories click here.
03 Nov 2014
18 Nov 2014
02 Dec 2014
03 Nov 2014
17 Nov 2014
The over-the-counter (OTC) derivatives market is in the midst of a global regulatory restructure. Authorities in Europe, Asia and the US are currently...
A fast, flexible and reliable investment decision-making process must be based on access to accurate and consistent information throughout an organization....