BNP Paribas Securities Services announced that it will launch a local custody service in the U.S. for the countrys multi-national banks, brokers and institutional investors.
BNP Paribas will offer local clearing, settlement and custody of all major asset classes listed on NYSE Euronext and NASDAQ OMX, and will connect directly to the US Depository Trust and Clearing Corporation.
Expanding its local custody network is at the core of the banks strategy to support its clients investment activities in the worlds largest financial center. The expansion also minimizes BNP Paribas’ reliance on third parties for these services as the regulatory environment focusses more on end-to-end operational control.
Extending our sub-custody capabilities to include the US means that we will become the local custodian for more than 90 per cent of our clients global assets, said Patrick Colle, chief executive of BNP Paribas Securities Services.
The launch of the US sub-custody service will also be a significant development in the custodians investment programme in the US. Last February, Claudine Gallagher was appointed regional manager of North America to spearhead the growth of the business there, including the anticipated launch of global custody in 2013.
North America is a crucial market to investors whether on the buy or sell side, in Europe or Asia, said Gallagher, who also sits on the custodians executive committee. Processing our first transactions as a local custodian in the US will be an important milestone in our commitment towards supporting US investors and an increasingly global client base.
BNP Paribas currently has almost $7 trillion in assets under custody. The group, whose services in the US include retail banking, investment banking and investment solutions, has operated in North America for almost 140 years. Its securities services business has been there for more than 25 years.
(JDC)