In an interview with Euromoney | Sibos Insider, Patrick Colle, CEO of BNP Paribas Securities Services has revealed how the bank has made clearing one of its expansion priorities. The bank unveiled its extension of collateral management services by including centrally cleared over-the-counter (OTC) derivatives at the Sibos conference in Toronto, Canada, in a bid to help institutional investors become compliant with changing regulations by 2012.
The introduction of the Dodd-Frank Act in the US and European Market Infrastructures Regulation is set to drive a significant amount of OTC derivatives onto electronic platforms which will be cleared by central counterparties. BNP Paribas’s new service will be fully operational in the first quarter of 2012.
The announcement is the latest in a line of clearing focused initiatives that the bank has launched over the years.
Colle used the example of BNP Paribas being crowned the largest third party clearer in Hong Kong earlier this year, after clearing over 5% of the value of the Hong Kong Stock Exchange's daily turnover.
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