Fundamentals

Euroclear Bank and BNP Paribas Securities Services today announced an agreement which will allow their mutual clients to benefit from access to a larger pool of collateral for triparty transactions. The agreement will enable the two organisations’ mutual clients to use fixed-income and equity assets held with BNP Paribas Securities Services as collateral in triparty managed transactions at Euroclear Bank.

While the focus has been on addressing the urgent matter of Greece and the growing debt crisis, it’s all gone quiet on the suggestion of introducing Eurobonds to raise much needed cash in the EU. But analysts at Valbury Capital have been assessing whether the aptly named ‘stability bonds’ will bring stability and more importantly investors back to the Eurozone.

Mr Anso Thiré, Managing Director and Head of Business Development for the Euroclear group, said: “Euroclear Bank has supported the initiative from the beginning and is very happy to work closely with our Asian colleagues to deliver practical ways of further improving the bond market infrastructure in Asia. Euroclear Bank has strong ties with the Asia-Pacific region, having operated with offices in the region since the 1980s. We value the trust that the HKMA and BNM have placed with us to partner them as they embark on a multi-faceted programme of regional post-trade improvements. We look forward to working with other Asian markets on their settlement, collateral management and corporate action processing challenges.”