Florida State Board of Administration, Tallahassee, issued a solicitation for proposals in a search for prime services brokerage and collateral management services.
The FSBA, which oversees $180.3 billion in assets, prefers respondents submit a proposal for both services, although the FSBA will permit separate proposals for either of the two, according to the solicitation.
Prime services include prime brokerage in short-selling of securities, foreign-exchange prime brokerage, as well as clearing for futures, options and over-the-counter derivatives, including swaps, according to the solicitation.
Collateral management includes margin collateral custody and management services related to prime services.
FSBA is undertaking the search “to expand our list of service providers to mitigate risk due to provider concentration,” John Kuczwanski, communications manager, said in an e-mailed response to questions.
BNP Paribas, incumbent prime services brokerage firm, and Bank of New York Mellon, incumbent provider of collateral management services, have contracts that will remain in place and have no need to rebid for the services, Mr. Kuczwanski said.
The solicitation is available on FSBA's website.
Proposals are due July 11. The FSBA expects to make a decision Aug. 15.