Nationwide, the world’s largest building society, has appointed BNP Paribas Securities Services to provide triparty collateral management and global custody services for its non-UK assets. The selection of BP2S’s triparty collateral management services helps Nationwide meet its obligations under Wave 5 of the initial margin rules. These require financial institutions to post collateral to back up their non-cleared OTC derivatives trades in order to mitigate counterparty risk.
BP2S will also provide Nationwide with settlement and custody services for its non-UK assets. This is in addition to the mandate to safekeep Nationwide’s UK assets, which BP2S won in 2016. In total, BP2S now provides Nationwide with global custody services representing c. GBP20bn in UK and non-UK assets.