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
VanEck is expanding its fixed income range with a new ETF this week to complement its existing subordinated debt strategy which has received $1 billion in inflows this year.
Specialist global equities manager Nanuk has celebrated 10 years of its flagship New World Fund and is actively considering its next possible vehicle.
Australian equities manager Datt Capital has built a retail-friendly version of its small-cap strategy for advisers, previously only available for wholesale investors.
The dominance of passive funds is having a knock-on effect on Australia’s M&A environment by creating a less responsive shareholder base, according to law firm Minter Ellison.
