BNP Paribas Securities Services is working with SWIFT to enhance collateral protection for corporate, buy-side and sell-side clients.
SWIFT standardized messages supporting tri-party collateral flows will be integrated within the bank’s ‘Margin Protect’ service, which ensures full compliance with the upcoming regulatory requirements on OTC transaction, mitigation of counterparty risk, asset safety and cash reinvestment facilities. ‘Margin Protect’ also helps the management of all securities collateral operations, from instruction to substitution and monitoring.
Philippe Ruault, head of clearing settlement and custody products at BNP Paribas Securities Services, said: “The more stringent requirements and the expected increase in volumes of collateral exchanged will make it difficult for firms to cope with a manual process still largely reliant on fax and emails. The combination of our robust and efficient custody model with SWIFT’s secure messaging services supporting collateral management will benefit clients as it ensures collateral safety through a simplified access to account control arrangements (ACA)”.
Alain Raes, chief executive, EMEA and Asia Pacific, SWIFT, said: “We are delighted to be working with a leading custodian such as BNP Paribas to help its clients to improve efficiency in the critical area of collateral management. We are confident that this development will boost the systematic use of the ACA for the benefit of our clients and their counterparties.”