Mount Street appointed to manage Dexia’s derivatives book

Mount Street and Dexia announce that they have signed an agreement under which Mount Street will take over the management of Dexia’s derivatives trading book, together with a team of eight derivatives experts. Mount Street will be responsible for the comprehensive management of Dexia’s derivatives trading book, covering pricing, execution and market surveillance, whilst Dexia retains decision and risk allocation.

This agreement extends the relationship between the two companies, with Mount Street Portfolio Advisers GmbH (MSPA), Mount Street’s regulated business, having served as the exclusive outsourced service provider for Dexia’s bond portfolio since February 2024. These services have included asset management, trade execution, portfolio valuation, surveillance as well as strategic advisory.

Under the terms of the new five-year agreement, eight members of Dexia’s derivatives trading team have transitioned to Mount Street’s Paris office, which recently opened under the leadership of Francois Duruy.

The contract reflects Mount Street’s established expertise in the sector, its successful track record in outsourcing and its role as the portfolio manager of choice for leading institutions.

This experience is demonstrated by a number of institutional mandates, including its appointment in February 2022 by Aviva Investors to provide debt servicing for a £30 billion portfolio, and its role in 2023 as independent portfolio manager for Helaba’s HLB Private Markets Platform, where Mount Street supported the fundraising strategy for Helaba’s “Infrastructure Debt Fund I.”

Stephan Plagemann, Chief Financial Officer at Mount Street, commented: “This new mandate is the latest endorsement of the strong outsourcing platform we have built over the past two years. It represents an important milestone for Mount Street, enabling us to establish a presence in France – one of Europe’s key financial markets – and meaningful scale in the derivatives management space. With clients operating against a challenging macro and regulatory climate, we are seeing increasing demand from a range of financial institutions for outsourcing expertise to optimise their operational set-up. The relationship with Dexia further enhances our overall client proposition and underscores our commitment to delivering comprehensive, value-added solutions across the whole balance sheet”.

Pierre Crevits, CEO at Dexia, commented: “Building on our established relationship with Mount Street, this agreement represents an important step in the ongoing management of Dexia’s derivatives activities. Entrusting the management of our derivatives trading book to a specialised partner of Mount Street’s calibre supports our objective of ensuring continuity, robustness and high‑quality execution as we progress with our orderly resolution. The transfer of our experienced teams further underlines our commitment to maintaining strong operational capabilities and expertise throughout this process and this gives them a perspective of development in the dynamic environment that MSPA creates every day.”

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