BNP Paribas and non-bank market making firm GTS, have announced a strategic collaboration, which they say, marks “a new era for banks and electronic market makers”.
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.
Although the firms are boosting the deal as a new era, it is similar in nature to one signed between Virtu Financial and JP Morgan in the US Treasury market last year.
“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,” says Olivier Osty, executive head of global markets at BNP Paribas. “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 CEO of GTS, adds, “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.”