Assistant Manager - Collateral Management (SLAB)

About Business line/Function:

Global Market Securities Settlements team ensures that US Domestic Security transactions (Bonds, Equities, Complex Securities, ETF, SLAB, Repo..) and positions registered in the books under CIB ITO's mandate, match the commitment actually taken with counterparties within a secure setup, in accordance with Group and Regulatory Policies and/or contractual agreements.

Within the Securities Settlement Department, the main processes include pre & post settlement activities, clearing, and event-related accounting for securities deemed in scope.

For SLAB, operations team manages the exposure on the bilateral trades and performs collateral trade booking in the system (where BNP receives collateral). Ops also performs recall and return bookings for the request sent by counterparty. For same day short for settlement or buy-in issue, operations book the recalls from triparty or inform the desk to make necessary borrows. Additionally, in case of account short with triparty, to have smooth release of recalls, ops requests desk to pledge-in the necessary amount of collateral, if required

Within the Securities Settlement Department, the main processes include pre & post settlement activities, clearing, and event-related accounting for securities deemed in scope

Position Purpose

Manage in a daily basis collateralised agreements within Collateral Management Operations to support both for derivatives security lending and repo activity.

* The Collateral Management Group processes the Net Present Value of the portfolio of trades between BNPP SA, BNPP Arbitrage and its counterparties on a daily (or as specified) basis and ensure that this exposure is sufficiently collateralised. Currently the group handles approximately $140 Billion of collateral globally on behalf of the Bank and its counterparties as regulators to require Banks to mitigate counterparty credit risk. The group interacts closely with Traders, Marketers, Legal, Credit and Operations.

* Changes in the portfolio PV (due to market price fluctuations, or new / matured trades) will generate changes in the required collateral balance. The collateral teams will call for or post additional collateral funds depending on the direction of movement of the PV of the trade portfolio relative to collateral exchanged. This daily margin call process ensures that at all times, the Bank and its subsidiaries remain as protected as possible from excessive credit risk exposure, and hence can minimise the amount of regulatory capital set aside against credit risk.

Ensure robust control environment across functions

Key Responsibilities :

Responsible for the settlement of Security transactions & associated products booked in Calypso, on a timely and cost effective basis by:

• Ensuring all trades are instructed, matched & settled on a timely basis
• Monitoring of failing trades
• Reducing fails and/or potential fails by means of pairing off or partialing down deliveries
• Minimizing fails by means of partial deliveries where possible
• Pre-matching trades in a daily basis
• Cash Management related with funding trades
• Responsible for solving Nostro and Depot reconciliation breaks on a timely basis:
• By investigating and, where possible, clearing all nostro breaks in reported by Securities

Control teams

• By passing entries to the Calypso systems to clean up outstanding items on a timely basis
• By investigating and, where possible, rectifying all depot breaks on a timely basis reported by

Securities Control teams

• By investigating and solving accounting breaks raised by Securities Control
• Escalating items that represent operational risk to the direct Manager
• Contribute to the minimisation of settlement costs & operational risk:
• By becoming more risk aware and by following the procedures or Compliance rules that are

in place to mitigate operational or reputational risk

• Monitors and take appropriate actions in case of market risks (buyins)
• By seeking to improve STP rates at our custodians so reducing cost, by updating static data as and when necessary
• By reducing the number of manual instructions sent to agents therefore reducing cost, manual intervention and settlement risk according to Compliance rules
• If necessary, using the escalation process when operational risk is detected
• Contribute to the overall successful running of the settlement department:
• By maintaining close relationships with traders and sales and escalating problems to them

promptly where required