Exclusive: SecFinex products to be cleared by BNP Paribas
16 January 2011 London
Image: Shutterstock
SecFinex has announced that BNP Paribas Securities Services will become a General Clearing Member (GCM) of its platform.
SecFinex was the first company to introduce centrally cleared services in the securities borrowing and lending (SBL) industry in 2009 using LCH.Clearnet as the central clearer covering equity markets in Belgium, France, The Netherlands and Portugal.
The service has since been extended to cover Austria, Denmark, Finland, Germany, Norway, Sweden and Switzerland, with SIX x-clear as the central clearer, with coverage of the UK market planned for 2011.
The expansion of the SecFinex central counterparty service to include BNP Securities Services as a GCM will allow a wider range of firms to participate in securities lending transactions without the need for major infrastructural build. Participants will also benefit from a single entry portal to multiple supply and distribution points without the need for multiple participation agreements, reduction of capital allocation for counterparty credit risk, centralised daily mark to market, real time risk management and margining and full straight-through-processing.
Roland Bellegarde, chairman of SecFinex Board, and group executive vice president and head of European execution, NYSE Euronext said: “Increased regulatory focus, attention to capital usage and cost as well as Basel III implications are some of the drivers that are starting to encourage a fundamental shift in the way securi- ties lending develops.
“Today’s exciting announcement with BNP Paribas Se- curities Services, a leading provider of GCM services, demonstrates SecFinex’s continuous commitment to providing participants with access to a centrally cleared market place for securities lending and to be at the forefront of market innovation.”
Alain Pochet, head of clearing and custody services at BNP Paribas Securities Services said: “We are pleased to announce the addition of SecFinex to our service offering. By using their existing connections, our clients can now extend their use of our GCM services to trade on SecFinex and participate in the online global marketplace for securities lending.”
SecFinex was the first company to introduce centrally cleared services in the securities borrowing and lending (SBL) industry in 2009 using LCH.Clearnet as the central clearer covering equity markets in Belgium, France, The Netherlands and Portugal.
The service has since been extended to cover Austria, Denmark, Finland, Germany, Norway, Sweden and Switzerland, with SIX x-clear as the central clearer, with coverage of the UK market planned for 2011.
The expansion of the SecFinex central counterparty service to include BNP Securities Services as a GCM will allow a wider range of firms to participate in securities lending transactions without the need for major infrastructural build. Participants will also benefit from a single entry portal to multiple supply and distribution points without the need for multiple participation agreements, reduction of capital allocation for counterparty credit risk, centralised daily mark to market, real time risk management and margining and full straight-through-processing.
Roland Bellegarde, chairman of SecFinex Board, and group executive vice president and head of European execution, NYSE Euronext said: “Increased regulatory focus, attention to capital usage and cost as well as Basel III implications are some of the drivers that are starting to encourage a fundamental shift in the way securi- ties lending develops.
“Today’s exciting announcement with BNP Paribas Se- curities Services, a leading provider of GCM services, demonstrates SecFinex’s continuous commitment to providing participants with access to a centrally cleared market place for securities lending and to be at the forefront of market innovation.”
Alain Pochet, head of clearing and custody services at BNP Paribas Securities Services said: “We are pleased to announce the addition of SecFinex to our service offering. By using their existing connections, our clients can now extend their use of our GCM services to trade on SecFinex and participate in the online global marketplace for securities lending.”
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