BNP Paribas inks deal with FIS for derivatives clearing tech

BNP Paribas signed a 10-year agreement with FIS, firming up a partnership in post-trade derivatives clearing technology.

The bank is working with FIS to transition to FIS’ Cleared Derivatives Suite, which centralises all main post-trade workflows onto a single, unified global system that spans more than 90 exchanges.

FIS’ platform will manage the full post-trade derivatives lifecycle for BNP Paribas, including reconciliations and post-trade processing requirements. 

By securing an evolution to the new FIS platform, BNP Paribas expects to benefit from significant operational efficiencies, enhanced reactivity and reduced risk, ultimately delivering better service to its clients.

Nasser Khodri, FIS’ president for capital markets, said the derivatives clearing industry is facing a perfect storm of challenges, stemming from increasing operational costs and regulatory changes, which is leading to pressure on margins. Also, recent market volatility and high-volumes periods have accelerated the need for modernisation.

“The 2020 volume peak further confirmed our strategy to invest for the long term in robust technological and operational capabilities”, said Gaspard Bonin, deputy head of derivatives execution and clearing at BNP Paribas. 

“This 10-year agreement is, for our clients and market partners, a clear testament of BNP Paribas’ long-term commitment to providing the best of service and to invest in new technology,” said Bonin.