Euroclear, BNP Paribas Extend Collateral Highway Partnership

Capital markets in Belgium, France, The Netherlands and Germany are now covered by the tri-party collateral management service on the network, operated jointly by the ICSD and the custodian bank. Mutual sell-side clients in six nations, including Italy and Spain, are now able to use the service, where equities and fixed-income collateral can be optimized between books for use in tri-party transactions that are cleared by Euroclear Bank. Mobilization is seamless, and securities can be returned to a domestic account at any time.

"The unique technology used allows for the automatic and friction-free mobilization of both fixed-income and equities collateral at a lower cost than other cross-border tri-party collateral providers," says Frederic Hannequart, chairman of Euroclear Bank. "Our joint customers can now take a holistic approach to collateral management and this service affords them the highest levels of cost and risk efficiencies when sourcing and allocating securities. Together with BNP Paribas, we are delivering a client-driven solution that hinges on open-source portfolio optimization."