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Solutions (11/16)
Collateral management, independent valuation and transaction processing
Collateral management, independent valuation and transaction processing
Collateral management, independent valuation and transaction processing

Collateral management, independent valuation and transaction processing

In a rigorous context where operational challenges are increasing, market yields are under pressure, and regulations are more stringent than ever, you need to rely on a partner who can support you and bring operational efficiency, asset safety and collateral optimisation.

Since 2011, we have continuously invested in robust and scalable platforms and designed a highly modular suite of solutions – Collateral Access – covering a wide range of transactions. As a leading custodian with a complete suite of collateral management solutions, we are ideally positioned to support you and help you reduce your counterparty risks.

What sets us apart

  •  An end-to-end solution for over-the-counter (OTC) transactions, such as repo, OTC derivatives and securities lending
  •  A global operating model: one collateral management team sharing one operating model; a highly automated and integrated solution
  •  Regional presence, providing follow-the-sun coverage with local teams servicing their region
  •  Fully compliant with the latest industry practices and regulations, leveraging expert teams, connected to industry workgroups and regulatory bodies

Unlock your potential with a global player

  • A fully modular suite of solutions, with services provided on a stand-alone or bundled basis:
    • Transaction management, supporting trade processing, Central Clearing Counterparty (CCP) model , matching affirmation confirmation, events and cash flow management
    • OTC (over-the-counter) transaction valuation and analytics
    • Bilateral collateral management supporting both variation and initial margin
    • Triparty collateral management
    • Regulatory portfolio reconciliation
    • Regulatory reporting to DTCC
  • Integrated with our securities services: middle office, fund administration, custody, depobank
  • Continuous investments in technology, connectivity to all market platforms, scalability of our platforms

A full suite of solutions

Bilateral collateral management

Acting as a bilateral collateral management agent since 2011, we support asset managers, asset owners and insurance companies for any collateralised transaction worldwide: cleared and non-cleared OTC derivatives, foreign exchange, securities financing, repos, TBAs (To Be Announced) and Forward MBS (Mortgage-Backed Securities). We have designed a flexible solution that benefits from continuous upgrades to keep on being at the forefront and better assist you.

Choosing BNP Paribas as your collateral agent gives you access to:

  • An open model, interfaced with multiple custodians and tri-party agents and connected with market utilities and major valuation providers
  • A scalable infrastructure
  • Our smart allocation process that automatically selects securities to be delivered according to a waterfall of priority
  • Uncleared margin rules services supporting both variation and initial margin.
    • Our services to support initial margin for non-cleared derivatives:
      • Initial margin (IM) calculations under either ISDA Standard Initial Margin Method (SIMM) or table-based model leveraging our independent valuation capabilities
      • Exchange of IM calls through standard market utilities, dispute management with drill-down into risk factors
      • “Account Control Agreement” custody structure leveraging our triparty capabilities for pledgors (collateral givers)
      • Controls that IMs are duly exchanged through processing and reconciliation using triparty messages (from both pledgor and pledgee positions)

Triparty collateral management

Since 2017 our triparty platform supports our clients, providing advanced technology and seamless user experience in an environment where no new player had emerged in the past 20 years.

As a leading custodian, we enable you to connect with a large community of banks, asset owners, asset managers, hedge funds and corporates. Our solution is fully integrated with the rest of the BNP Paribas ecosystem to ease the connection between collateral takers and collateral givers.

By leveraging our services, you maximize your securities financing transactions (repo, securities financing, etc…) and benefit from:

  • A highly efficient mobilisation of your assets thanks to our most recent features: simulation module, advanced algorithms.
  • Greater asset protection through asset segregation and our extensive proprietary custody network.
  • Streamlined legal framework.
  • Ability to operate collateral exchange on segregated markets at CSD level[1]
  • Increase the velocity of your collateral transfers.

Our solution makes the most of our custody locations by sourcing directly all types of collateral (fixed income, equities, cash) from your local or global custody accounts in order to mobilise collateral quickly when and where it is needed. 

Watch the video below to learn more about triparty collateral management.

Independent valuation

Valuation of OTC instruments requires strong capabilities and expertise and the independence of OTC prices is of utmost importance in highly volatile markets. We offer a comprehensive, robust and sophisticated valuation service

  • Covering a broad coverage of instruments from vanilla to exotic, cleared and non-cleared
  • Relying on recognised valuations partners to price all your portfolios in a single platform
  • With a strong control framework in order to perform deep investigation
  • Supporting both Standard Initial Margin Model (ISDA SIMM) and grid methodologies for initial margin calculation

Transaction processing and lifecycle management

Our solution encompasses post-trade processing and life cycle management services, portfolio reconciliation and reporting to trade repositories giving you access to all market platforms through a single entry point (SWIFT, TriResolve, DTCC Global Trade Repository to name a few).

What is the difference between bilateral and triparty collateral management?

[1] Some exception may apply due to market specificities

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