bankingtech.com

BNP Paribas Securities Services has launched Liquidity Access, a solution designed to help banks and broker dealers manage and monitor their liquid assets. The launch comes as various regulations, including Basel III and Dodd Frank, require market participants to hold more liquid assets, closely monitor their liquidity ratios and anticipate the evolution of their liquidity positions. Intraday liquidity management and reporting is likely to be a hot topic this week as the January 2015 deadline for Basel intraday liquidity reporting looms.

The product has been in development for about 18 months and is based on discussions with clients about their requirements. “We are seeing huge demand from our clients to help them rethink the way they manage and monitor their liquid assets,” said Florence Bonnevay, head of market and financing services at BNP Paribas Securities Services.

The product is based on three pillars – anticipate, leverage and optimise – which support clients’ liquidity management needs, said Bonnevay. Liquidity Access provides reporting tools such as treasury cash forecasts and intraday liquidity reporting. Users get a clear view of the cash and liquid assets at their disposal across territories, time zones and accounts. The provision of a consolidated view of accounts across jurisdictions can help clients to identify any gaps in their liquidity requirements. BNP Paribas offers new, secured funding possibilities under the Liquidity Access product umbrella such as structured, transparent credit lines, both intraday and overnight. Users can choose from a range of cash consolidation solutions, enabling them to manage their cash flows more efficiently across accounts held with BNP Paribas.

“Since the financial crisis, intraday liquidity has become a big issue and clients are focusing on it. If clients have identified a gap in their liquidity requirements, BNP Paribas can offer a credit line to cover this,” said Bonnevay.

Liquidity Access is available to bank and broker clients of BNP Paribas Securities Services and is offered alongside its global and local custody offerings. The suite is designed to be unbundled into component services to create bespoke offers to suit individual clients’ needs. All firms have a different approach to liquidity and collateral management, said Bonnevay and as a result there was no “one size fits all” solution.

“The market is changing and so are we. We have devised a comprehensive liquidity solution, which enables our clients to anticipate their liquidity needs, take advantage of new liquidity facilities and optimise their cash flows,” she said.