SecFinex said that the expansion of its central counterparty (CCP) service to include BNP Securities Services as a GCM will allow a wider range of firms to participate in securities lending transactions without the need for major infrastructural build.
Participants will also benefit from a single entry portal to multiple supply and distribution points without the need for multiple participation agreements, reduction of capital allocation for counterparty credit risk, centralized daily mark to market, real time risk management and margining and full straight-through-processing.
SecFinex board chairman Roland Bellegarde said increased regulatory focus, attention to capital usage and cost as well as Basel III implications are some of the drivers that are starting to encourage a fundamental shift in the way securities lending develops.
"Today’s exciting announcement with BNP Paribas Securities Services, a leading provider of GCM services, demonstrates SecFinex’s continuous commitment to providing participants with access to a centrally cleared market place for securities lending and to be at the forefront of market innovation," Bellegarde said.
