BNP Paribas Named Custodian for CME Clearing
BNP Paribas – BNP Paribas is now one of CME Clearing’s approved custodians for US Treasury and federal agency securities. This means that CME clearing members now have an additional option to diversify their holdings of performance bond deposits, which are used for margin collateral.
As a direct securities participant to the Federal Reserve in the US, BNP Paribas will help CME Clearing and its members enhance operational efficiency, as Fed-eligible securities are the main asset class for performance bond collateral.
Bruno Campenon, Americas Head of Custody and Clearing Services for BNP Paribas Securities Services, said: “We are delighted to add such a prestigious customer to our US client base. This is testament to the work we have been doing since launching custody in the US in 2012.”
Sunil Cutinho, President, CME Clearing, said: “We’re pleased to welcome BNP Paribas as a custodian in the United States. With the addition of BNP Paribas, CME Group provides greater diversity of custodians to our global clearing members and clients to support their collateral management needs at CME Clearing.”
BNP Paribas launched local custody in the US in 2012 to provide post trade services to international banks, brokers and institutional investors.
BNP Paribas is a well-respected player in the global derivatives field, where it executes and clears for itself and on behalf of its clients.
Custody accounts are now opened and available for collateral deposits by clearing members of CME.
IRS trading volumes have fragmented without an equivalence agreement.
Phase 5 of the uncleared margin rules came into effect on 1 September.
Triparty repos can be executed across U.S. Treasury securities to central clearing.
CEDX opened on 6 September, offering contracts on Cboe Europe single country and pan-European indices.
A significant proportion of total collateral held with CCPs globally can be automatically optimized.