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
Lonsec and SQM Research have highlighted manager selection as a crucial risk for financial advisers when it comes to private market investments, particularly due to the clear performance dispersion.
Macquarie Asset Management has indicated its desire to commit the fast-growing wealth business in Australia by divesting part of its public investment business to Japanese investment bank Nomura.
Australia’s “sophisticated” financial services industry is a magnet for offshore fund managers, according to a global firm.
The latest Morningstar asset manager survey believes ETF providers are likely to retain the market share they have gained from active managers.
