BNP Paribas Securities Services, a global custodian with over USD$7 trillion of assets under custody, today announced that it has won mandates for four leading international brokers, including Investec, to expand their businesses in Asia-Pacific in the last two months, leveraging the bank’s extensive back office outsourcing platform.
Following the launch of trading operations in early 2013, Investec and three other brokers have begun Asian market activities, using BNP Paribas’ unique third party clearing and settlement platforms in Hong Kong.
The need to quickly establish cost-efficient foot-prints in Asia, is the main reason why brokers such as Investec turned to BNP Paribas in order to simplify the roll-out of their operations in the region, making the most of the Custodian Bank’s position as the leading global clearer on the Hong Kong Stock Exchange (HKEx).
Barnaby Nelson, head of bank, broker and issuer client development for BNP Paribas Securities Services in Asia, said: “We’ve worked extremely hard to build a high quality clearing platform for global brokers in Asia and this demonstrates that we have what our international partners need in the Asia-Pacific region. We are delighted to be able to support organisations as they realise their global ambitions – and to have the essential tools that they need to grow efficiently.”
BNP Paribas launched clearing services in Hong Kong in 2011 as a modular-based framework within a single platform that supports an unprecedented range of asset classes; including not only traditional equities but also warrants and ETFs. In relying on BNP Paribas for a full post-trade platform, these and other brokers have chosen to focus their resources on what differentiates them in front of their customers.
Trevor Gatfield, head of securities Operations at Investec, said: “Our clients have brought us to Asia and BNP Paribas has been there to accompany us as we’ve extended our global model into Hong Kong. Having a single international partner has made our expansion so much easier and it has left us free to focus entirely on delivering what our customers want from us here.”
An ongoing growing trend to outsource
According to the fourth annual BNP Paribas / Swift Back Office Outsourcing in Asia survey, which draws on feedback from over 150 broker dealers and investment banks, 27% of the region’s brokerages have now outsourced some part of their post-trade infrastructure (an increase of 11% versus 2011). This continues a consistent trend towards outsourcing, noted since the beginning of the survey in 2009.
As part of the ongoing development of its award-winning* third party clearing infrastructure in Asia, BNP Paribas will launch a third party clearing service for the Singapore Stock Exchange later this year. It is already a general clearing member of primary exchanges in 22 global markets for listed derivatives, bonds, commodities and cash equity products. It also clears trading activity through a range of multilateral trading venues including EMCF, EuroCCP, LCH.Clearnet, Eurex Clearing, CC&G, and SIX x-clear.
* In June 2012, the bank won the The Banker award for “Innovation in clearing and settlement technology” for the second consecutive year.
Sarah Decottegnie, BNP Paribas Securities Services Press Office + 44 207 595 4653 firstname.lastname@example.org
Andrew Achimu, BNP Paribas Group press office + 33 (0) 1 43 16 82 04 Andrew.email@example.com
Christine Chan, BNP Paribas Hong Kong office + 852 2909 8847 Christine.firstname.lastname@example.org