Collaboration between banks and electronic market makers enters next phase

London, 15 November, 2018 – BNP Paribas, a leading European provider of banking and financial services, and GTS, a New York-based global electronic market maker, today announced the signing of a new Memorandum of Understanding (MOU).

The MOU signed at BNP Paribas’ annual flagship Global Markets conference in London expands on an existing collaboration on US Treasuries to apply to US equities. BNP Paribas continues to be committed to growing its presence in the US market and providing its clients with enhanced and innovative liquidity solutions.

BNP Paribas and GTS announced their first strategic collaboration in November 2017, enabling BNP Paribas to leverage GTS’ trading and technology capabilities to provide clients with deeper liquidity, tighter spreads and improved pricing in the US Treasuries secondary market. Since the collaboration, BNP Paribas’ secondary electronic market share with clients in US Treasuries has grown from 1.5% to 4.0%.

Olivier Osty, Head of Global Markets, BNP Paribas said:

“We are delighted to be expanding our initial transformative collaboration with GTS into the US equities space through the MOU we have signed today. BNP Paribas is committed to delivering efficient, high quality and innovative liquidity solutions to our clients and this represents significant progress in the evolution of capital markets activities.”

Ari Rubenstein, Co-Founder and Chief Executive Officer of GTS, said:

“The GTS initiative with BNP Paribas is a game-changer for clients.  We are putting the most sophisticated AI and machine learning to work with outstanding results.  The overall outcome is tighter spreads, lower costs and overall price improvement when accessing the equities and fixed income markets.”

PRESS CONTACTS
Alexandra Umpleby
+44 7467448780
Alexandra.UMPLEBY@uk.bnpparibas.com

About BNP Paribas

BNP Paribas is a leading bank in Europe with an international reach. It has a presence in 73 countries, with more than 196,000 employees, including around 149,000 in Europe. The Group has key positions in its three main activities: Domestic Markets, International Financial Services (whose retail-banking networks and financial services are covered by Retail Banking & Services) and Corporate & Institutional Banking, which serves two client franchises: corporate clients and institutional investors.

BNP Paribas employs more than 9,000 people across 10 business lines in the UK. These include Corporate & Institutional Banking, Exane BNP Paribas, Leasing Solutions, Arval, Real Estate (including Strutt & Parker acquired in September 2017), Asset Management, Cardif Pinnacle, Commercial Finance, Personal Finance and Vauxhall Finance. Around half of its employees are in Corporate & Institutional Banking, based in London, while the others are based in various offices across the country, including Belfast, Birmingham, Cardiff, Glasgow, Manchester.

BNP Paribas to Leverage GTS’ Trading Technology to further improve pricing to clients in the secondary market for U.S. Treasuries

This Strategic Collaboration Marks a New Era for Banks and Electronic Market Makers

NEW YORK, NY, November 16, 2017—BNP Paribas, a leading European provider of banking and financial services, and GTS, a New York-based global electronic market maker, today announced a strategic collaboration marking a new era for banks and electronic market makers. This collaboration will enable BNP Paribas to leverage GTS’ trading and technology capabilities with the goal of providing BNP Paribas’s clients with deeper liquidity, tighter spreads and further improved pricing in the US Treasuries secondary market.

BNP Paribas, with its strong presence in corporate and institutional banking and its top-ranked position in a number of fixed income and equity markets, and GTS, with its technology and electronic market making capabilities, will leverage their respective strengths to continue to develop the collaboration.

Under terms of the strategic collaboration, BNP Paribas will seek to improve the client experience by providing improved pricing in the secondary market for US Treasuries by the addition of GTS liquidity into its pricing framework. A dedicated team from both firms will leverage a mutually developed technology platform that seeks to provide BNP Paribas with access to greater liquidity, thereby enabling the bank to offer improved execution quality for clients as they trade directly with BNP Paribas.

Olivier Osty, Executive Head of Global Markets at BNP Paribas, said:

“The US is an important market for BNP Paribas, and we are fully committed to expanding our capital markets franchise by focusing on our clients and their demand for improved liquidity and better transparency. This innovative collaboration with GTS illustrates how we work with firms that are experts in financial technology to enhance our client offering across the Bank’s value chain. It is an important step in our ambition to become a leading digital capital markets house in the financial services industry.”

Ari Rubenstein, Co-Founder and Chief Executive Officer of GTS, said:

“This collaboration is a transformative moment for capital markets and reflects the next phase in the evolution of relationships between banks and electronic market makers, which provide investors with a low cost and more efficient trading experience. GTS continues to focus on innovative methods of providing more liquidity in more places by broadening access to our trading technology and building platforms for the future.”

About BNP Paribas

BNP Paribas is a leading bank in Europe with an international reach. It has a presence in 74 countries, with more than 190,000 employees, including more than 146,000 in Europe. The Group has key positions in its three main activities: Domestic Markets and International Financial Services (whose retail-banking networks and financial services are covered by Retail Banking & Services) and Corporate & Institutional Banking, which serves two client franchises: corporate clients and institutional investors. The Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporates and institutional clients) to realize their projects through solutions spanning financing, investment, savings and protection insurance. In Europe, the Group has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is the leader in consumer lending. BNP Paribas is rolling out its integrated retail-banking model in Mediterranean countries, in Turkey, in Eastern Europe and a large network in the western part of the United States. In its Corporate & Institutional Banking and International Financial Services activities, BNP Paribas also enjoys top positions in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific. In the United States, BNP Paribas conducts securities business, including in US Treasuries, through its affiliate, BNP Paribas Securities Corp., a FINRA member that is registered with the US Securities and Exchange Commission as a broker-dealer.

About GTS

GTS is a global electronic market maker, powered by combining market expertise with innovative, proprietary technology.  As a quantitative trading firm continually building for the future, GTS leverages the latest in artificial intelligence systems and sophisticated pricing models to bring consistency, efficiency, and transparency to today’s financial markets. GTS accounts for over 3-5% of daily cash equities volume in the U.S. and trades over 10,000 different instruments globally. GTS is the largest Designated Market Maker(DMM) on the floor of the New York Stock Exchange, responsible for more than $12 trillion of market capitalization. For more information, please visit: GTSX.com.

Media Contacts:

Mylene Benmoussa, BNP Paribas, NY
212 841 2351
mylene.benmoussa@us.bnpparibas.com

Sarah Worsley, BNP Paribas, Paris
+33 (0)6 64 36 74 35
Sarah.worsley@bnpparibas.com

Brett Philbin, Edelman
212-704-8263
brett.philbin@edelman.com

How is BNP Paribas Corporate and Institutional Banking reinventing itself in the face of challenges posed by digital and tech? Constance Chalchat, BNP Paribas CIB’s Head of Change Management, recently appeared on BFM Business’ “Tech&Co” program in France for a debate on what the digital transition means for businesses and how BNP Paribas is reinventing itself and accompanying clients in this transformation.

Click here to watch the video (in French only) and to read the key takeaways from the interview.

BNP Paribas Securities Services, a leading global custodian, commissioned TABB Group to identify the technology trends shaping our industry

NEW YORK, June 20, 2017 – Custodian banks are embracing emerging technology like blockchain and big data analytics to help clients in their digital transformation, according to a new TABB Group report “Safekeeping Empowered: Reimagining the US Custody Business.”

Commissioned by BNP Paribas Securities Services, a leading global custodian, TABB Group’s research team interviewed a select group of sell-side senior executives (COOs, heads of operations and heads of technology) at mid-sized banks and brokers in the US regarding their technology priorities and their expectations from custodians.

“As a top five global custodian, staying ahead of market developments is crucial, so we worked with TABB Group to identify the technology trends that are shaping our industry in the US market,” said Bruno Campenon, Head of Financial Intermediaries & Corporate Client Line, BNP Paribas Securities Services. “The survey results validate that the advanced technologies we are already developing globally, such as distributed ledger technology and artificial intelligence, position us well to help our clients succeed in a changing digital landscape.”

Strategic Priorities of the Sell-Side

The priorities of the sell–side consumers of custody services, particularly mid-sized banks and brokers, are driven by the need to achieve value, comply with regulation, aggregate data and reduce costs.  When asked about their most important technology initiatives, respondents rated cybersecurity (19%), the need for a client-driven user interface (19%) and data aggregation across the enterprise (15%) as their top priorities.

In addition to their technology development projects, respondents were also asked about their non-technology priorities.  Regulatory compliance (22%) ranked number-one overall, with achieving operational efficiencies to create an automated operating model (20%) and data quality (15%) were also noted.

Looking ahead, over the next five years, respondents expect their own operational efficiency to be impacted most by blockchain and distributed ledger technology (66%), regulatory technology to help firms better navigate regulatory compliance (60%) and big data analytics (33%).

What the Sell-Side Wants

The survey also looked at what mid-tier sell-side custody clients are looking for from their existing service providers and how they believe custodians should be prioritizing new technology to advance their relationships.

When asked what is important when evaluating a custodian, the following ranked most highly: knowledge of the client’s business, easy-to-use technology, strength of balance sheet and reputation for innovation.

When selecting a new custodian, respondents focused on elevated levels of customer service (18%), value in return for their custody fees (18%), operational expertise (16%) and innovative technology offerings (14%).

When asked what specific areas of technology respondents wanted their custodians to invest in, cloud computing and storage where clients might migrate their own applications, digital identity or biometric technologies as part of multi-factor authentication methods to mitigate security risks, and distributed ledger technology ranked highest.

The Future of Custody

U.S. sell-side customers of custody services expect their custodians to keep up with emerging technology trends and automate wherever possible.  When asked what aspects of securities servicing they would most like changed in the next three years, 34% noted an ease of regulatory constraints, while 27% noted automation of manual processing. Capital constraints (16%) and collateral optimization (13%) also rated.

“We found that the custody industry is set for transformation in terms of the technology they use, while the focus on customer service reigns supreme,” said TABB Group Senior Analyst Dayle Scher, who authored the report. “Adoption of automation for remaining manual processes, combined with better data analysis, are critical enablers of the high-touch coverage the sell-side so covets.”

An executive summary of the TABB Group Report “Empowering Safekeeping: Reimagining the US Custody Business” along with a 90-second video interview with TABB Group Analyst Dayle Scher and Bruno Campenon of BNP Paribas is available.

For more information or to purchase the report, contact info@tabbgroup.com.

About TABB Group

TABB Group is the international research and consulting firm focused exclusively on capital markets. For 14 years, TABB Group has been helping business leaders gain a truer understanding of financial markets issues to develop actionable roadmaps and approaches to future growth. By accurately assessing their customer base, competition, and key market opportunities, TABB Group works with senior industry leaders to make critical decisions about their business. For more information, visit www.tabbgroup.com.

About BNP Paribas Securities Services (http://www.securities.bnpparibas.com/)

BNP Paribas Securities Services, a wholly owned subsidiary of the BNP Paribas Group, is a leading global custodian and securities services provider. Backed by the strength of the BNP Paribas Group, we provide multi-asset post-trade and asset servicing solutions for buy and sell-side market participants, corporates and issuers. With local expertise in 36 countries and a global reach covering 90+ markets, our network is one of the most extensive in the industry, enabling clients to maximize their investment opportunities worldwide.

Contacts:

For TABB Drew Seldin +1 (646) 747-3231/ dseldin@tabbgroup.com

For BNP Paribas Jamie Somohano +1 (212) 841-2406/ jamie.somohano@us.bnpparibas.com

The first Blockchain Bizhackathon organised by BNP Paribas on Transaction Banking activities has just ended. Initiated by the Corporate Trade and Treasury Solutions team, the aim was to assess real-world potential blockchain technology applications for use in both trade finance and cash management.

In the context of the digital transformation of BNP Paribas and the Bank studying blockchain technology since 2011, the Corporate Trade and Treasury Solutions team started to reflect on potential direct blockchain applications for use in its business activities.

During two days, more than 70 participants (transversal teams from BNP Paribas, clients, blockchain experts and FinTechs) gathered to explore how this new technology could concretely improve both the customer experience and the efficiency of the services offered in the following six areas of transaction banking:

• Cash management & correspondent banking
• Trade finance & documentation
• Supply chain upstream: inventory management
• Supply chain downstream: payables & receivables
• Commodity financing
• Open account

Thanks to the highly collaborative work produced during the two days, promising ideas emerged. They will now be further analysed and deepened over the course of the year, in order to assess their true potential and actual feasibility in a reasonable timeframe.

Marc Carlos, Head of Corporate Trade and Treasury Solutions, BNP Paribas, explains: “Our first ‘bizhackathon’ helped us to highlight the opportunities of the blockchain for our flow financing activities and our financial services to corporate treasurers, as well as its potential applications to improve our practices, review and optimise our processes, and reinforce the reliability, traceability and security of our transactions”.

“Our clients’ contribution over the two days was invaluable because it helped us, not only to understand their needs, but also to reflect together on how to reinvent the way in which we can work together to enhance the quality and relevance of our client solutions. The presence of internationally-renowned experts in Blockchain technology in each of our groups also helped us to work in an agile and rapid way, accelerating the process of reflecting on, and analysing the options”.

For BNP Paribas, which has also joined international (R3) and European (CDC) initiatives, and has just announced its acquisition of a stake in the FinTech, Digital Asset Holdings, the blockchain could be a real driver of innovation in banking practices, and therefore beneficial to all its clients.

 

About BNP Paribas Corporate and Institutional Banking

Fully integrated in the BNP Paribas Group and representing approx. one third of the Group’s revenues, BNP Paribas Corporate and Institutional Banking (CIB) is a leading provider of solutions to two client franchises: corporates and institutionals, and operates across EMEA (Europe Middle East Africa), APAC (Asia Pacific) and the Americas. The bank is a global leader in Debt Capital Markets, Derivatives, is a top European house in Equity Capital Markets, has leading franchises in Specialized Financing and is a top five Securities Services House worldwide. BNP Paribas CIB strives to service the global economy by providing personalised solutions in risk management across all asset classes, financing (ECM, DCM, specialized financing…), financial advisory (M&A, project finance), flow banking (trade finance and cash management), global markets (interest rates, credit, foreign exchange, equity derivatives…), and securities services.

Over the weekend BNP Paribas held its first-ever international hackathon with simultaneous sessions in five cities – Paris, Brussels, Rome, Istanbul and San Francisco. During the 48-hour period some 300 designers, developers and young startup teams were invited to work on one central theme: enhancing the customer experience.

An international ‘first’

Not only is digital transformation key in BNP Paribas Group’s business development plan for the coming years but the Bank is also building up a new Open Innovation ecosystem. Accordingly, ‘co-creation’ was the watchword of the BNP Paribas International Hackathon. For two days this international multi-site event gave talented people with diverse specialities the opportunity to collaborate and come up with prototypes for apps or online services in response to a particular business need. This is the first time that a competition on this scale has been held simultaneously in five countries, with the involvement of two of the Bank’s businesses – BNP Paribas Cardif and BNP Paribas Personal Finance. Programmers, developers, designers and startup owners all worked on four common themes around the customer experience: click and mortar, simple yet secure, financial literacy and empowerment, tailored and relevant.

A 3-stage programme

The digital challenge is being run in three stages. The first stage was the competition which took place last weekend, at the end of which 16 teams were selected to go forward to the second stage – a digital boot-camp, which will be running in the summer until September. This will be an online mentoring phase during which the participants will be able to call upon the know-how of BNP Paribas professionals so as to optimise their chances of success. At the end of this period, the competing teams will take part in an international Demo Day, where they will present their projects to innovation experts and investors. Five teams will then be chosen to progress to the third and final stage – a 6-month incubation period. This will provide a unique opportunity to draw on greater resources, including financial support, cutting-edge workspaces, a tailored acceleration programme, plus introductions to potential partners. The teams will retain the intellectual property rights arising from their work on the programme.

Agility combined with expertise

The BNP Paribas International Hackathon is designed to combine the agility of external creators with our in-house expertise in order to meet the rapidly evolving needs and expectations of our customers, while ensuring full security for their operations.

On Sunday evening the 7 winners of the initial stage of the BNP Paribas International Hackathon were named at the WAI[1] space in Paris. They are:

1. Challenges BNP Paribas – BDDF:
Behaviosec
Logmote
Contextor

2. Challenges France Cardif:
Fluo
Datasine

3. Challenges Personal Finance:
Heuritech
Centipede

Nine other teams were awarded in the participating countries.

Marie-Claire Capobianco, Head of the BNP Paribas branch networks in France and a member of the BNP Paribas Executive Committee, stated: “I’m delighted that the Group is supporting startups and collective ingenuity on a worldwide scale. The BNP Paribas International Hackathon provides a clear, powerful response to the changes taking place in the world around us and represents a considerable step in our transition process towards the bank of tomorrow, whose main challenge is to offer our customers a first-rate digital banking experience, while ensuring the security of their transactions and the integrity of their data.”

About BNP Paribas

BNP Paribas has a presence in 75 countries with more than 185,000 employees, including 145,000 in Europe. It ranks highly in its two core activities: Retail Banking & Services (comprised of Domestic Markets and International Financial Services) and Corporate & Institutional Banking. In Europe, the Group has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is the leader in consumer lending. BNP Paribas is rolling out its integrated retail banking model across Mediterranean basin countries, in Turkey, in Eastern Europe and a large network in the western part of the United States. In its Corporate & Institutional Banking and International Financial Services activities, BNP Paribas also enjoys top positions in Europe, a strong presence in the Americas and solid and fast-growing businesses in Asia-Pacific.