SecFinex signs up BNP Paribas as general clearing member

BNP Paribas Securities Services has become a general clearing member (GCM) on the SecFinex central counterparty (CCP) platform.

As a result of the move, BNP Paribas will now be able to clear for itself, on behalf of its clients and on behalf of non-clearing members, allowing a greater number of firms to access the SecFinex service, without the need for major operational changes.

In addition, SecFinex pointed to the fact that participants will be able to use a single entry portal to various supply and distribution points, without requiring multiple agreements. Users should also see reduced capital allocation for counterparty credit risk, centralised daily mark to market, real-time risk management and margining, and full straight-through processing.

 “Increased regulatory focus, attention to capital usage and cost as well as Basel III implications are some of the drivers that are starting to encourage a fundamental shift in the way securities lending develops,” said Roland Bellegarde, SecFinex chairman and group executive vice president and head of European execution at NYSE Euronext.

“Today’s exciting announcement with BNP Paribas Securities Services, a leading provider of GCM services, demonstrates SecFinex’s continuous commitment to providing participants with access to a centrally cleared market place for securities lending and to be at the forefront of market innovation.”

 Alain Pochet, head of clearing and custody services at BNP Paribas Securities Services, added: “We are pleased to announce the addition of SecFinex to our service offering.   By using their existing connections, our clients can now extend their use of our GCM services to trade on SecFinex and participate in the online global marketplace for securities lending.”

SecFinex began offering CCP services in the securities lending industry in 2009, using LCH.Clearnet as the central clearer in the Belgian, French, Dutch and Portuguese equity markets. Since then, the CCP service has expanded to cover Austria, Denmark, Finland, Germany, Norway, Sweden and Switzerland, with SIX x-clear as the central clearer.

The firm also plans to begin coverage of the UK market in 2011.