BNP Paribas has announced the integration of Pirum’s connectivity services into its Triparty Collateral Services, enhancing operational efficiency for mutual clients in the securities finance sector. This collaboration aims to provide real-time, automated exposure and collateral management solutions, streamlining processes for securities lending, repo, and over-the-counter (OTC) derivative transactions.
A Significant Collaboration
Frédéric Pascal, head of market and financing services within BNP Paribas’ Securities Services, highlighted the importance of this integration: “The connection between Pirum and our Triparty Collateral Management platform is a major milestone in the development of our franchise.” He emphasized that the partnership is focused on helping clients effectively implement their securities finance strategies while simplifying the transition to Triparty services.
Enhanced Automation and Efficiency
Pirum’s services automate the entire collateral lifecycle, which includes critical tasks such as calculation, matching, submission, and validation of collateral requirements and allocations. This integration allows mutual clients to gain improved visibility and efficiency in their collateral management processes.
Rob Frost, chief product officer at Pirum, remarked on the significance of this partnership: “Connecting BNP Paribas’ Triparty platform to our collateral management and optimization services represents a new and exciting chapter in our collaborative story. This integration is based on our shared goal of continuously enhancing the client experience.”
Addressing Industry Challenges
The integration of Pirum’s Exposure Management service is designed to help clients mitigate settlement fails and Central Securities Depositories Regulation (CSDR) penalties. Additionally, it aims to reduce collateralization timeframes while increasing operational efficiencies for all participants involved in the securities finance ecosystem.
A Win for the Securities Finance Industry
Frost added, “This move also helps to increase connectivity and liquidity across the French securities-based lending, repo, and OTC derivatives sectors, making this a win for the entire securities finance industry.” The collaboration between BNP Paribas and Pirum signifies a step forward in enhancing the efficiency and effectiveness of collateral management services in the financial sector.
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