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BNP Paribas live on Euroclear’s Collateral Highway
11 March 2013
The arrangement is available in the Spanish and Italian markets, and the two institutions are working to extend it to the other European and Asian markets
BNP Paribas Securities Services has gone live on Euroclear Bank’s Collateral Highway system after first entering a collaboration agreement in 2012.
The move enables mutual clients of both institutions to access securities held at BNP Paribas Securities Services as collateral for tri-party operations conducted by Euroclear.
Frederic Hannequart, chairman of Euroclear, said: “This partnership is particularly timely and important as demand for collateral continues to increase. By joining forces, we alleviate one of the challenges of collateral fragmentation by making the transfer of collateral to the right place at the right time as seamless and operationally simple as possible.
The first trade completed through this new partnership was carried out through the Spanish market. This allowed a mutual client of the agent bank and Euroclear to use available securities held with BNP Paribas Securities Madrid as collateral for the tri-party transaction administered by Euroclear.
The same service is already available in the Italian market and work is being done to extend it to the main European and Asian markets.