BNP Paribas Debuts Securities Inventory Management

Securities Inventory Management makes use of active forecast and position management technologies to allow securities purchased by BNP Paribas Securities Services’ asset manager and asset owner clients to automatically be moved at the end of every day to their domestic markets. 

“The problem that we wanted to solve, or better the benefit that we wanted to bring to our clients, is to make sure that securities are held within the shortest custody chain so that the services we bring them as a global custodian, we can be sure that these are the best one,” says Christian Houillon, global head of local clearing and custody product management. “Especially the service related to the management of corporate actions, but also the timely settlement of our client instructions.”  

The service will also enable the automatic transfer of securities to the required settlement market in case of a sale, reducing manual processes and associated risks such as settlement delays. It relies on BNP Paribas’ proprietary network, which is one of the largest in the global custody world. 

“[The service is] unique by the fact it is done automatically based on all the positions that we see and all the flows and instructions that the client is sending to us,” says Gael David, head of global risk and clearing product management. “Ultimately, this is really an analysis of where are the securities, what are the flows, and being able to decide automatically with some flexibility in the different parameters we can set on the tool.”   

The Securities Inventory Management service is currently offered in France, Germany and Italy with plans to offer globally in the coming weeks. It is mainly offered to buy-side clients, but David says that the bank is examining how it can be used by sell-side firms as well.

BNP Paribas Securities Services has $11 trillion in assets under custody and provides solutions to asset managers, asset gatherers, asset owners, issuers and financial intermediaries. It is a wholly owned subsidiary of BNP Paribas Group.