BNP Paribas Securities Services will partner up with FinTech firm Calypso Technology to provide investment banks with full post-trade services across asset classes.
As part of this partnership, BNP Paribas will incorporate Calypso’s front-to-back architecture into its own post-trade capabilities with the aim of creating a global multi-asset class operating model for its investment bank clients.
Using Calypso’s post-trade platform, BNP Paribas will handle investment banks’ post-trade requirements including clearing and custody services as well as middle-office services such as confirmations and commission management.
BNP Paribas will also manage back-office services including regulatory reporting and asset servicing.
“This partnership comes as new regulatory requirements and the need to upgrade mature technology platforms are increasing our client’s operating costs and prompting them to outsource post-trade functions,” said Alain Pochet, head of clearing and custody services at BNP Paribas Securities Services.
“We now provide a full end-to-end post-trade service offering integrating middle, back office, clearing and custody services and by using one provider for all their post-trade needs, our clients will be able to better manage their risks and costs.”
Calypso’s technology will enable BNP Paribas to service clients’ post-trade requirements across equities, fixed income, cash equivalents and commodity derivatives.
“This alliance reflects the seismic change that is taking place in the capital markets,” said Pascal Xatart, CEO at Calypso.
“Improvements in Software as a Service (SaaS) technology have given banks a legitimate alternative to the status quo and the benefits of working with a back office utility provider are substantial.”