BNP Paribas Securities Services, Calypso Partner on Multi-Asset Post-Trade Outsourcing Service

The collaboration between BNP Paribas Securities Services and Calypso will provide an end-to-end post-trade outsourcing service across a variety of asset classes, based on Calypso's technology and BNP Paribas' existing clearing and custody offering.

It will cover clearing and custody to middle-office services ─ including confirmations, fees and commission management, and P&L reporting ─ and back-office services, such as static data management, accounting, regulatory reporting, asset servicing, and standing settlement instructions (SSIs).

Alan Cameron, global solutions sponsor, clearing and custody services, at BNP Paribas Securities Services, tells WatersTechnology that the decision to select Calypso for the outsourcing service was partly informed by the fact that BNP Paribas already utilizes the vendor's technologies within parts of its infrastructure, as well as judging it to be the "best service across multiple asset classes" during a market-wide selection process.

"What differentiates us from other offerings in the market is that as a security services provider we are already providing the clearing and custody parts, and we'll be able to offer an integrated service across the middle and back office, right through the post-trade value chain," Cameron says. "It's quite a step forward for the industry."

The new outsourcing service has been launched in response to an increasing demand for outsourcing from banks, particularly those providing CIB (corporate and investment banking) services.

While increasing regulatory demands are causing greater operational burdens on middle- and back-office processes across the industry, the growing demand for outsourcing is also being fuelled by a desire to facilitate rolling out products both internally and to market with greater speed, according to Cameron.

"Most of it is about cost containment," he says. "These costs come from regulations and the increasing spend on technology, but the other aspect is being able to roll out products faster and keep them up-to-date, which is the other big problem for banks."