By Flora McFarlane.
BNP Paribas has announced today that it has teamed up with quantitative trading firm, GTS, to access US Treasuries trading, signalling the importance of leveraging technology in an increasingly electronic market.
The collaboration with the electronic market-making firm will enable BNP to leverage GTS’ trading capabilities and technology to access the US$14 trillion US Treasury market, aiming to provide clients with tighter spreads, improved pricing and deeper liquidity.
“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,” said Olivier Osty, executive head of global markets at BNP Paribas.
GTS liquidity will be incorporated into BNP Paribas’ pricing framework in the secondary market for US Treasuries. The platform available to clients has been developed by dedicated teams from both firms, which signals a change in use of traditional externalised technology, leading the way for greater collaboration between banks and technology specialists. Last year, JPMorgan teamed up with Virtu, with the high frequency trading firm suppling technology for electronic Treasury trading.
“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,” said CEO of GTS, Ari Rubenstein.