BNP Paribas Securities Services (BNP Paribas) has unveiled its plan to offer an integrated post-trade service to banks, brokers and other financial intermediaries.
Under the new service, the financial organizations will be able to trade stocks under the proposed cross-trade agreement between the London Stock Exchange (LSE) and the Singapore Exchange (SGX).
Designed to provide enhanced liquidity and increased access for investors, the deal between two exchanges will be implemented in two phases.
During the first phase, LSE members will trade on the newly created International Board in the major 37 companies listed on the SGX this year, before SGX members begin trading blue-chip, FTSE 100 stocks during the first half of 2013.
London based clearing house LCH.Clearnet will offer clearing services for the planned cross-trade agreement, while BNP Paribas will offer clear, settle and safe-keeping Singaporean stocks traded on the International Board, and FTSE 100 stocks traded on SGX.
Without investing in new memberships or additional technology, this service will benefit Singapore-based brokers by allowing them to clear locally.
BNP Paribas trades as a general clearing member for all major European, Asian and US exchanges, as well as multi-lateral trading facilities.