BNP Paribas Integrates Swift for Collateral Protection

The integration, in support of tri-party collateral flow within Margin Protect, will provide compliance with upcoming over-the-counter (OTC) derivatives regulation, as well as mitigated operational risk for BNP's buy- and sell-side customers, along with corporate clients.

"The more stringent requirements and the expected increase in volumes of collateral exchanged will make it difficult for firms to cope with a manual process still largely reliant on fax and e-mails," says Philippe Ruault, head of clearing settlement and custody products at BNP Paribas. "The combination of our robust and efficient custody model with Swift's secure messaging services supporting collateral management will benefit clients as it ensures collateral safety through a simplified access to account control arrangements(ACA)."