Establishing proximity in new markets is key to financial intermediaries wanting to grow their trading activities and capture new business. Yet building the requisite critical mass introduces rising settlement and custody costs by complicating cash management and on-boarding requirements, and the added costs of working with more local agents in each market.

The service also incorporates collateral management which - critically - will improve clients' liquidity and their capital usage. By having a full view of clients' operations, the bank is able to closely evaluate their collateral requirements and recommend - more accurately than ever - the exact amount of collateral required.

Commenting on the development, Philippe Ruault, Head of clearing, settlement and custody products at BNP Paribas Securities Services said "In the current climate, the number one concern for financial intermediaries is maintaining their volumes and margins - so anything which can actually boost growth is in very strong demand right now."

"Our solution removes virtually all of the complexity involved with implementing and managing moves into new markets, thus enabling banks and brokers to react quickly to business opportunities in new territories," added Eric Roussel, Head of trade and market services at BNP Paribas Securities Services.

"With this critical aspect of their post-trade infrastructure under our management, clients can focus their efforts on their core business activities," continued Mr. Roussel.

BNP Paribas' client service model is fully customisable, and designed to deliver global reach with local expertise in each market. The platform's open architecture enables it to interface with client accounts held with ICSDs or other sub-agents, maximising IT and operational efficiencies across clients' networks. The solution also benefits from automatic cross-borders to reduce the number of trade failures and buy-ins.