BNP Paribas Securities Services announces that it is live with a new type of collateral reporting solution – applying “powerful calculations engines” on big amounts of data to make long-term predictions about the need for collateral.  

Are collateral predictions our industry’s equivalent of weather forecasts? Well, this news from BNP Paribas indicates parallels. For its client AIA Group, an Asian life-insurance giant, the custodian is apparently live with a new number-crunching service aimed at optimising the allocation of collateral for derivatives exposures.

While AIA is the first named live client, more background and details on the “Predictive Collateral Coverage Reporting” service were publicly outlined here already last autumn.


“Using BNP Paribas’ new solution based on big data analytics and powerful calculations engines, AIA is able to assess its collateral needs at any given time and take into account collateral constraints in its trading decisions,” writes BNP Paribas Securities Services in its new news release.

“AIA can reprice derivatives and collateral in more than 3,000 economic scenarios. A powerful data visualisation layer enables AIA to drill into the data and proactively manage its derivatives books in different economic scenarios.”

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