BNP Paribas Securities Services has launched a new sub-custody service in Chile, as it looks to continue expanding its Latin America presence.
The move will enable the French global custodian to provide international and regional investors with access to the Chilean market.
As part of the launch, BNP Paribas Securities Services has become a direct participant in the Chilean central securities depository (CSD), Depósito Central de Valores, which will act as a tax agent in accordance with Chilean regulations.
BNP Paribas Securities Services’ offering in Chile includes settlement, safekeeping, corporate actions, proxy voting, cash management and FX, as well as all regulatory reporting.
“Opening a new market is further proof of BNP Paribas’s commitment to the Latin America region. Our operating model, which has already proven successful in other countries in the region, offers a wide range of opportunities to non-resident investors in Chile,” said Claudia Calderón, head of BNP Paribas Securities Services in Hispanic LatAm.
Chile has sought to ease access for foreign investors over the years, having made their peso-denominated bonds eligible for processing through Euroclear in 2017.
Last year, the national stock exchange of Chile – alongside those in Colombia and Peru – conducted an early-stage analysis looking into the viability of consolidating their infrastructures and/or services.
The new offering adds to BNP Paribas’ expanding sub-custody and clearing offering in the Latin America region, which also includes Brazil, Colombia and Peru.
In May, it also opened a post-trade services business in Mexico, providing daily accounting and valuation services, as well as tax pricing and regulatory reporting.