• FIS’ Cleared Derivatives Margin Advisor performs margin calculations for position onboarding, portfolio simulation and comparison against capital requirements.
• The solution helps BNP Paribas’ robust capital management and risk infrastructure, while containing costs.
• Due to its cloud-based architecture, FIS’ Cleared Derivatives Margin Advisor can be quickly deployed and readily scales to meet current and future processing requirements.
FIS™, a global leader in financial services technology, today announced that BNP Paribas has selected FIS’ Cleared Derivatives Margin Advisor, an innovative solution that enables sell-side firms, investment funds and institutional investors to better assess and calculate initial margin requirements on cleared derivatives portfolios.
FIS’ Cleared Derivatives Margin Advisor replicates margin requirements for current or hypothetical portfolios in real-time across the diverse exchange traded derivatives market supported by FIS post-trade systems. The solution can connect with FIS back-office systems or integrate into any trading or position-management system to provide an automated calculation for initial margin. Because it is cloud-based, FIS’ Cleared Derivatives Margin Advisor is quick to deploy and easily scales to meet the performance requirements of organizations large and small.
BNP Paribas, one of the world’s largest banks, is using the FIS solution to increase its visibility around initial margin on its cleared derivatives transactions.
“FIS’ Cleared Derivatives Margin Advisor gives us much greater visibility into margin requirements across the many business lines and customers we support today,” said Gael Pottiez, head of Product Development, Derivatives Execution & Clearing, BNP Paribas. “By partnering with FIS, we are able to deliver a self-service margin solution to our risk teams and end-customers in a cost-efficient way.”
“Being able to quickly and precisely calculate initial margin is critical for institutional investors, investment funds, proprietary trading groups and sell-side firms,” said Martin Boyd, head of Institutional & Wholesale business, FIS. “Margin Advisor is a good example of using advanced automation technology to help firms like BNP Paribas better manage their business and enhance their operations.”
Initial margin, also known as a good faith deposit, is the capital required to hold an open derivatives position according to clearinghouse rules. Calculating initial margin on a cleared derivative transaction is a critical back-office function for both sell-side and buy side firms to allocate requirements and ensure accounts are not capital deficient.
FIS (fisglobal.com) is a global leader in financial services technology, with a focus on retail and institutional banking, payments, asset and wealth management, risk and compliance, and outsourcing solutions. Through the depth and breadth of our solutions portfolio, global capabilities and domain expertise, FIS serves more than 20,000 clients in over 130 countries. Headquartered in Jacksonville, Fla., FIS employs more than 53,000 people worldwide and holds leadership positions in payment processing, financial software and banking solutions. Providing software, services and outsourcing of the technology that empowers the financial world, FIS is a Fortune 500 company and is a member of Standard & Poor’s 500® Index.
About BNP Paribas
BNP Paribas (group.bnpparibas) is a leading bank in Europe with an international reach. It has a presence in 73 countries, with more than 196,000 employees, including around 149,000 in Europe. The Group has key positions in its three main activities: Domestic Markets, International Financial Services (whose retail-banking networks and financial services are covered by Retail Banking & Services) and Corporate & Institutional Banking, which serves two client franchises: corporate clients and institutional investors.
BNP Paribas employs more than 9,000 people across 10 business lines in the UK. These include Corporate & Institutional Banking, Exane BNP Paribas, Leasing Solutions, Arval, Real Estate (including Strutt & Parker acquired in September 2017), Asset Management, Cardif Pinnacle, Commercial Finance, Personal Finance and Vauxhall Finance. Around half of its employees are in Corporate & Institutional Banking, based in London, while the others are based in various offices across the country, including Belfast, Birmingham, Cardiff, Glasgow, Manchester.