BNP Paribas Securities Services has introduced Collateral Access, a fully integrated and comprehensive offering for both buy-side and sell-side clients.

Market dynamics and the search for increased transparency are pushing participants to implement a robust risk mitigation framework around collateral management. Incoming regulation, in particular, EMIR and Dodd-Frank, has increased the need for collateral for all OTC derivatives, whether cleared or non-cleared. The new liquidity standards of Basel III will also affect future demand for high-quality liquid assets.

To address market concerns, BNP Paribas has positioned Collateral Access as a key strategic initiative across its business lines. It comprises three pillars:

• efficient risk mitigation: aiming at actively managing counterparty risk, it relies on robust trade management for all instruments (including both cleared and non cleared derivatives), independent portfolio valuation, margin and dispute management – all supported by industry-leading platforms
• optimization and transformation: providing margin requirement simulation, it helps optimize collateral allocation and take advantage of financing solutions or lending opportunities
• protection and velocity: ensuring safekeeping and segregation of collateral, it provides connectivity to market infrastructures and an innovative settlement set-up, to reduce liquidity friction between counter-parties.

Collateral Access can be tailored to specific client needs.