BNP Paribas launches domestic sub-custody in Australia
BNP Paribas Securities Services has gone live with domestic sub-custody services in the Australian market, with custody and
settlement services on offer since going live in May.
The bank says that local custody and settlement
services are being used by external clients via BNP Paribas’ global custody
network and that BNP Paribas Arbitrage, the group’s broker-dealer business
unit, is also using the services. Australia becomes BNP Paribas’ 23rd market in
which these services are offered.
“We previously had local custody capabilities in
22 different markets worldwide, and have now opened up domestic services in
Australia alongside our global custody activities,” said Pierre Jond, managing
director of BNP Paribas Securities Services Australia and New Zealand. “This
means that we have the same global technology we can utilise in Australia.”
The decision to bring sub-custody services to
Australia is a result of both BNP Paribas Securities Services’ global strategy
of service provision as well as assessing the market opportunities afforded
after the securities services business received its Australian banking licence
“The business strategy was two-fold,”Jond said.
“The first part was to open up a banking entity in July 2011. The idea was to
provide banking services to our superannuation funds and asset manager clients.
The concept behind the investment was really to offer treasury and other cash
management services to clients, but along the way, as you build your business,
you realise that the custody engine you have implemented in 22 other locations
can be adopted here.”
Furthermore, the decision to open local custody
and settlement services is attractive to global clients who would prefer to use
BNP Paribas for Australian sub-custody, Jond adds.
“We are using the same technology,” he said. “It
is low hanging fruit- the economics stack up for us. Global clients like to
deal with BNP Paribas sub-custody branches locally. It is also the norm that as
soon as we have an operational presence, we offer local custody services. That
has been the cornerstone of our business.”
Reporting by Rachel Alembakis, Global Custodian Australia, an Asset International publication.