Specialist execution services broker AQX Securities has selected BNP Paribas Securities Services as it global central settlement provider.
Hamburg-headquartered AQX is an agency broker spun out from German asset manager Aquila, with a focus on execution and multi-asset commission sharing agreement services.
The deal with BNP Paribas will see it provide central settlement for all trades executed on AQX Securities.
Its service is underpinned by a tripartite agreement, which will see client trades settled directly between the counterparty and BNP Paribas. The bank will back settlements with its balance sheets, guaranteeing performance for clients.
Norman Hartmann, CEO of AQX Securities, said: “Counterparty risk, pre-matching of trades, and timely settlement are becoming increasingly vital to our growing, global client base. Our model B settlement agreement with BNP Paribas complements our own middle- and back-office teams.”
BNP Paribas will also pre-match settlement instructions for AQX clients where possible and settle with the counterparty on a delivery-versus-payment basis.
BNP Paribas Securities Services’ UK head of sales and relationship management, Julien Kasparian, added: “Our offering for our bank and broker clients services them across all asset classes and covers the whole globe. We bring efficiency to the trade cycle, and help clients protect their assets and adjust to regulatory change.”