BNP Paribas Securities Services has won a mandate from Fdris Gestion dActifs (Fdris) to provide a suite of collateral management services supporting the managers over the counter (OTC) derivatives activities.
The mandate expands a relationship that has existed since 2002 between BNP Paribas and Fdris, the dedicated asset management company of major French insurance and pension group Malakoff Mdric managing more than 23 billion in assets.
As our business evolved with increased use of derivatives, so too did our requirements for a robust collateral management service that would help manage the credit risk associated with multiple counterparty OTC derivative transactions, says Stphane Carteau, director of operations at Fdris. We lacked the in-house expertise to manage this function effectively, so outsourcing this critical activity made a lot of financial sense. We were satisfied that BNP Paribas Securities Services had the operational infrastructure and expertise to handle our global collateral management requirements. Their platform has given us the base to enhance our collateral activities, while allowing us to concentrate on our core business activities of investment management.
BNP Paribas offers multi-jurisdictional booking of collateral across more than 10 locations. The platform can be integrated seamlessly into existing client systems or provided as part of the banks suite of services for OTC derivatives, including trade management, independent valuations and collateral management.
In a more demanding environment, buy-side institutions such as Fdris will continue to outsource specialised services such as collateral management for OTC derivatives, to expert providers, says Hlne Virello, head of collateral management at BNP Paribas Securities Services. We are pleased to have been appointed by Fdris as their collateral management partner in support of their evolving business strategy and look forward to extending what is already a longstanding relationship with them.
(CG)