Securities Financing Industry News | Nationwide chooses BNP Paribas for its collateral management services


BNP Paribas Securities Services has won a mandate to provide Nationwide Building Society with tripartite management of global collateral and custody services for its assets outside the UK.

Tripartite Collateral Management Services will help Nationwide meet its obligations under Wave 5 of the Initial Margin Rules, which requires financial institutions to post collateral to safeguard their uncleared OTC derivative transactions to mitigate counterparty risk.

During this time, settlement and custody services will be provided for Nationwide’s non-UK assets. This is in addition to Nationwide’s UK asset custody mandate, which BNP Paribas Securities Services won in 2016.

In total, BNP Paribas Securities Services now provides Nationwide with global custody services representing around £ 20 billion of UK and non-UK assets.

Paul Gould, Head of Operations and Strategic Development at Nationwide Building Society, said: “BNP Paribas Securities Services’ extensive custody network and tripartite collateral management services will help us effectively manage our assets in all of the markets in which we operate. let’s operate. “

Graham Ray, Global Head of Relationship and Sales Management for Banks and Brokers at BNP Paribas Securities Services, comments: “Through our tripartite collateral management services and our extensive custody network, Nationwide will be able to mobilize collateral quickly and securely, when and where they are. necessary. We look forward to continuing our partnership with Nationwide in the future. “

In addition, BNP Paribas Securities Services revealed that its tripartite collateral management service can now support synthetic securitization and collateralized securities structures, bringing greater operational efficiency and greater protection to these structures.

Launched in 2017, BNP Paribas Securities Services’ tripartite collateral management service connects players in the financial markets, facilitating the circulation of assets and expanding the range of securities that can be used as a support for securities financing and derivative transactions. .

According to BNP Paribas, its tripartite collateral management service will make it possible to transform the proceeds from the issuance of banknotes via securities financing transactions, or a cash loan secured by securities, in an efficient and secure manner.

This recourse to tripartite collateral management is already being used to manage the collateral aspects of the repo associated with the synthetic transaction Resonance 5 of BNP Paribas.

As a neutral and tripartite collateral agent, BNP Paribas Securities Services can manage the collateral management process on behalf of both parties to a transaction and protect the interests of Special Purpose Vehicles throughout the collateral management process.

The services include the selection of guarantees in accordance with the eligibility rules, the transfer of guarantees in near real time; and the valuation of collateral assets.

The bank explained that it can also handle margin calls, recall substitution and securities transactions.

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