BNP Paribas and Eastspring Investments, the Asian asset management business of Prudential, have teamed up with Singapore-headquartered fintech firm Hashstacs (STACS) to implement a blockchain-driven solution.
The new solution is set to enhance trade lifecycle management capabilities for exchange-traded derivatives (ETDs).
The trading fee calculation platform, named Mercury, addresses current inefficiencies in the trade lifecycle management of ETDs.
The first phase of the Mercury platform roll-out launched in June 2020.
Since the launch, Eastspring and BNP Paribas Securities Services say they observed an 84 per cent reduction in trade breaks and a four-hour per day reduction in non-value-added reconciliation work.
Lilian Tham, chief operating officer of Eastspring, says: “Asset managers and brokers will now be able to leverage a single source of truth and focus on value-added activities for their clients.”
Diana Senanayake, CEO South East Asia of BNP Paribas Securities Services, comments: “We built the solution with long-term partner Eastspring and Singapore fintech STACS, using an agile co-creation approach, leveraging the expertise of the BNP Paribas Design Factory in Singapore. The Mercury solution has the potential to benefit other industry players.”
Senanayake suggests the partnership addresses one of the Monetary Authority of Singapore’s ambitions to promote collaboration between local fintech firms and large corporates with a view to positioning Singapore as a regional digital hub.
Benjamin Soh, managing director of STACS, says: “We are excited to have resolved specific industry needs and simplified pivotal business activities for financial institutions like Eastspring and BNP Paribas through the implementation of our Mercury platform solution.”
Meanwhile in Hong Kong, BNP Paribas Securities Services is set to expand its collateral management range of services in Asia Pacific to assist firms in the region manage initial margin requirements arising from non-cleared over-the-counter derivatives positions.
