BNP Paribas Securities Services (BNPP SS) has won a ground-breaking third party clearing mandate from Liquidnet. This will allow the crossing network to undertake equity trading transactions in Hong Kong while at the same time complying with US reporting requirements.

 

Although BNPP SS has previously undertaken third party clearing for Hong Kong brokers, this is the first time it will be using a system that complies with US reporting regulations in real time.

 

“In recent years, complying with US reporting regulations has become crucial for Hong Kong brokers serving US and global clients,” according to Stephanie Marelle, head of BNP Paribas Securities Services Hong Kong. Marelle, who relocated to Hong Kong from Paris, replaced Bruno Campenon, who has moved to New York as head of clearing and custody services and corporate trust services for the Americas.

 

Marelle says the BNPP SS system can be useful for organizations in Asia, particularly Hong Kong and Singapore, which have to comply with international regulations as they expand from their domestic markets to overseas markets.

 

Although the BNPP SS back-office system was specifically designed to meet the requirements of Liquidnet, it can also be modified to address the needs of other clients particularly brokerages, according to James O’Sullivan, head of client development, banks and broker dealers, BNP Paribas Securities Services Hong Kong.

 

The new back office system replaced Liquidnet’s previous scheme that involved the use of two independent third party service providers, according to Andrew Walton, chief operating officer, Asia-Pacific at Liquidnet.

 

“Through this system, we are able to further improve operational efficiency and provide a smooth flow of post-trade processes and reporting to our clients in Asia under US regulations,” Walton says.