BNP Paribas Securities Services has gone live with an inventory management solution designed to automate the transfer of securities between different markets.
Using active forecast and position management technologies, the new service ensures securities purchased by the custodian’s asset manager and asset owner clients are automatically moved at the end of every day to their domestic market.
According to BNP Paribas, these securities can then benefit from advanced custody services such as liquidity and collateral optimisation.
“In today’s complex market environment, driven by the need for collateral availability, an increasing number of domestic assets are no longer held directly in their original market but through complex chains of intermediaries,” said Alain Pochet, head of client delivery, BNP Paribas Securities Services.
“This is why we have devised this new service, which makes the most of our local network, to automatically move assets back to the markets in which they were issued and mobilise them quickly wherever they are needed in case of cross-border transactions for example.”
The Securities Inventory Management service also enables the automatic transfer of securities to the required settlement market in case of a sale, reducing risks such as settlement delays.
The service is live for clients in France, Germany and Italy, and will be rolled out globally in the coming weeks.