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Have your cake and eat it too
Have your cake and eat it too

Have your cake and eat it too


Jerome Blais

Jerome Blais

Product Development

BNP Paribas Securities Services

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The benefits of using an agent bank to support liquidity needs

T2S is giving financial intermediaries a window of opportunity to assess how their chosen custody model best suits their needs.

At BNP Paribas Securities Services, we have worked closely with clients to help outperform what T2S will offer, in particular in the areas of liquidity management and financing..

For instance, we provide the possibility to choose between settlement in central bank money via a dedicated cash account (DCA), or in commercial bank money using BNP Paribas as an agent bank.

While central bank money comes with the guarantees of a market infrastructure, using the agent bank to support liquidity needs also comes with benefits:


  • Indeed, we offer physical or notional cash pooling solutions, as well as netting services.
  • We also believe that bespoke and flexible intraday and overnight credit facilities adapted to client activity and turnover is a key advantage to efficiently manage liquidity requirements.
  • We will allow clients to benefit from auto-collateralisation regardless of their cash account structure: clients are therefore free to choose the model that works the best without having to give up on the service. (Clients can also enable auto-collateralisation at the custody account level.)

But no picture of liquidity management would be complete without an easy and simple way to access collateral in the right place at the right time. Using our Collateral Connect solution built in partnership with iCSDs, clients will be able to make the most of triparty collateral solutions and our extensive custody offer at the same time.

Our fully automated inventory management service allows clients to make domestic inventory held with BNP Paribas available for their triparty activity. This helps balance the requirement of having eligible securities available for triparty collateral management with the need to settle trade locally on domestic securities – and thereby benefit from BNP Paribas’ local asset servicing expertise.