BNP Paribas Securities Services has launched a service to help asset owners measure and monitor the counterparty and liquidity risk arising from their derivatives exposure and anticipate their long-term collateral requirements. The service is already in use by AIA Group, a longstanding risk and analytics client. In 2016 AIA appointed BNPP as its OTC derivatives operations provider in Hong Kong and Singapore.
Based on data analytics and calculations engines, the new solution, enables users like AIA to assess their collateral needs at any given time and take into account collateral constraints in their trading decisions. Clients can reprice derivatives and collateral in more than 3,000 economic scenarios. A data visualisation layer enables clients to drill into the data and proactively manage their derivatives books in different economic scenarios.