BNP Paribas Securities Services is doubling down on its efforts to provide investors with access to local fixed income markets.

The French bank has listed a series of initiatives it is participating in as a global custodian and asset servicing specialist.

They include the liberalisation of China’s interbank bond market, a payment service from the Federal Reserve, European repo clearing and T2S.

“Financial institutions need fast and efficient access to local fixed income markets to satisfy their need for high quality collateral,” said Alain Pochet, global head of clearing, custody and settlement at BNP Paribas Securities Services.

“In addition, regulations are pushing investors to hold sovereign debt and corporate bonds. All this comes at a time when the markets are concerned with a possible shortage of government and corporate bonds.

“As a global custodian and asset servicer, we see it as our role to help our clients secure the collateral they need and enable them to fulfil their investment strategies.”

China

Under China’s interbank bond market, foreign asset managers and brokers can trade bonds directly through BNP Paribas’ China subsidiary.

The bank's securities services unit provides access and trade execution settlement and custody.

This week Clearstream became the first international central securities depository to offer global investors access to the $8trn China interbank bond market – the third largest fixed income market in the world.

HSBC is acting acting as the onshore bond settlement agent for Clearstream’s investors by providing trading execution, settlement and custody services.

Fedline

BNP Paribas Securties Services has also become a direct securities participant to the Federal Reserve’s online payment system Fedline, facilitating its clients’ set-up and growth in the US fixed income market.

Europe

Meanwhile, the bank added that it is Collateral Gateways solution for banks and brokers, launched in 2014, allows clients to automate the rebalancing of their collateral between their domestic accounts with BNP Paribas Securities Services and ICSDs for triparty needs.

The bank also upgrades its service in line with requirements for T2S – a new European securities settlement engine - so that clients do not have to take on those adaptations for themselves.