IBS Journal April 2015
Grands Moulins de Pantin, home of BNP Paribas Securities Services©Benh LIEU SONG, Commons Wikimedia
erage was an influence, with its various regional centres supporting a ‘follow the sun’ model. BNP Paribas Securities Services essen-
tially collects the trades from its clients and provides all of the middle office servic- es associated with these, underpinned by the various external OTC market utilities. At the outset, there were plenty of clients that were concerned about the regula- tions and even some that questioned the need to comply, says Iroz. It is particularly burdensome for mid-tier and smaller asset managers, without the resources to build solutions and add all of the necessary con- nectivity. The regulations have basically been
moving from the west (starting with Dodd Frank) to the east, says Iroz. EMIR more or less took the best bits of Dodd Frank and adapted them. The main difference between the regulations on the two sides of the Atlantic is the single-sided reporting under Dodd Frank and the double-sided reporting under EMIR. A number of coun- tries in Asia Pacific have no option but to introduce similar regulations as they are part of the G20, which defined the new regulatory playing field following the col- lapse of Lehman Brothers. Not surprising- ly, Japan, Singapore and Australia are the most advanced, even though Singapore
‘I think we took a good decision.’ Dominique Iroz, BNP Paribas Securities Services
does not belong to the G20. There is still more to do in Europe as
well, of course. Swap Execution Facilities (SEF), part of Dodd Frank, are on the way within MiFIR/EMIR. A SEF is a regulated facility, trading system or platform in which multiple participants have the ability to execute or trade swaps by accepting bids and offers made by multiple participants in the facility. To bring more transparency to the OTC market, there is an aim from the regulators worldwide to replace the trade execution by voice with electronic execu- tion. As happened in the US in late 2013 and early 2014, there will be the need to implement electronic execution platforms connectivity and begin on-boarding swap trades through one or more multilateral trading facilities (MTFs). Electronic trading on OTCs in Europe is not expected to be
© IBS Intelligence 2015
mandatory before early 2017. There will also be the need to collat-
eralise bi-lateral trades that do not go the clearing route, from the end of 2015 or ear- ly 2016. And the market is also awaiting cross-border rules from the Financial Stabil- ity Board (FSB) related to trades across mul- tiple jurisdictions because of the mismatch between the different regulations. ‘It is a challenge for the industry and we hope the issues will be resolved soon,’ says Iroz. Aside from all of these outside fac-
tors, what of BNP Paribas Securities Ser- vices’ project to implement Calypso? It is a long-standing user of the Reuters-derived Kondor+ for the front and middle office and this company’s KTP in the back office. The systems today reside with Misys. There was mounting frustration with the lack of progress with the Reuters platforms, par-
www.ibsintelligence.com 35
case study: bnp paribas
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48
