BNP Paribas to provide clearing, custody for Knight Capital
Knight Capital Europe Ltd has mandated BNP Paribas Securities Services to provide clearing, settlement, custody, stock lending and financing for its European equity business across Europe and North Africa.
The deal is intended to streamline Knight Capital’s operating model, to boost efficiency and further benefit the service provider’s role as a liquidity maker in equity markets.
Knight Capital, based in Jersey in the US, serves buy and sell side firms and corporate issuers globally. It is engaged in agency based trading and market making across global equities, fixed income, foreign exchange, options and futures.
BNP Paribas has assets under custody of more than $7trn.
Albert Maasland, head of International at Knight Capital Europe Ltd, said: “The bank’s top-rated proprietary network in our main markets, real time risk modelling in liquidity management, and overall transparency were key factors in the decision process. Entering into a partnership with BNP Paribas represents another step in growing our European execution business.”