As part of the agreement, the French financial conglomerate will implement SWIFT’s standardized messages supporting tri-party collateral flows within the bank’s ‘Margin Protect’ technology.
It will enable the firm to completely meet the impending regulatory requirements on OTC transaction, mitigation of counterparty risk, asset safety and cash reinvestment facilities.
Ranging from instruction to substitution and monitoring, ‘Margin Protect’ will also offer straightforward and more efficient management of all securities collateral operations.
BNP Paribas Securities Services clearing settlement and custody products head Philippe Ruault said that it would be gradually difficult for companies to tackle with a manual process amid more stringent requirements and increase in volumes of collateral exchange.
"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)," Ruault added.
More than ten regulations, especially Dodd-Frank and EMIR, have a direct impact on the procedure of manage and protect collateral, which is putting considerable challenges in terms of accessing and managing collateral efficiently.
With operations in 80 nations, BNP Paribas has almost 200,000 staff and manages three core operations including retail banking, investment solutions and corporate & investment banking.
