BNP Paribas Securities Taps Broadridge for Class Actions
BNP Paribas' Securities Services, a custody and post-trade services provider managing US$13.7tn in assets, has selected Broadridge Financial Solutions to handle its global securities class action services.
The move comes as class action litigation continues to expand beyond traditional markets, with more than 35 jurisdictions now offering collective redress mechanisms for shareholders who have suffered investment losses.
Technology deployment
Broadridge, which processes more than US$10tn in daily securities trades through its post-trade technology platforms, will provide BNP Paribas with systems to identify and process potential recovery opportunities for the bank's custody clients.
The technology automates the identification of eligible claims and manages the documentation required for filing, a process that has traditionally required manual processing and legal expertise to navigate varying jurisdictional requirements.
Christian Houillon, Head of Custody Product for Securities Services at BNP Paribas, says: “We will be able to harness Broadridge's proprietary technology to identify, file and recover investment losses, alongside their extensive industry expertise."
Global expansion of class actions
The partnership reflects the growing complexity of securities class actions, which allow groups of investors to collectively seek compensation for losses.
In 2024, investors had access to more than 125 recovery opportunities with settlements totalling US$5.2bn.
Class action mechanisms, which originated in the US market, have spread globally as regulators seek to provide retail and institutional investors with routes to recover losses from corporate misconduct.
This expansion has created challenges for custodians who must monitor litigation across multiple jurisdictions with varying legal frameworks.
Steve Cirami, Vice President and Head of Corporate Actions & Class Actions at Broadridge, says: “As the volume of securities class actions continues to rise, it's crucial for the clients of BNP Paribas' Securities Services business and other global financial institutions to leverage all available asset recovery opportunities.”
The system will be integrated into BNP Paribas Securities Services' custody network, which covers more than 90 markets.
The bank operates as part of BNP Paribas' broader capital markets and securities services division, providing custody and post-trade services to asset managers, banks, brokers, corporates and issuers.
Technical implementation
Broadridge's class action service combines technology for claims processing with a team of securities litigators, claims administrators and data specialists.
The system monitors global markets for new class action filings and settlements, matching them against client holdings data to identify eligible claims.
The technology handles the documentation requirements for different jurisdictions, managing the submission of trading data and proof of holding requirements that vary between markets.
This automation aims to increase participation rates in settlements by reducing the operational burden of filing claims.
“As the volume of securities class actions continues to rise, it's crucial for the clients of BNP Paribas' Securities Services business and other global financial institutions to leverage all available asset recovery opportunities”
The partnership will provide BNP Paribas' clients with access to Broadridge's claims auditing capabilities, which verify settlement payment calculations to ensure accurate distributions.
This process involves reconciling trading data against settlement terms, which can vary significantly between jurisdictions.
The scope of Broadridge's class action monitoring extends beyond traditional securities fraud cases to include antitrust violations, product liability claims and corporate governance disputes that affect shareholder value.
Each of these requires different documentation standards and eligibility criteria, which the system is configured to process according to local market requirements.
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