Articles tagged by BNP Paribas
Peter Gorra has left
his position as head of FX trading at BNP Paribas in New York, Profit & Loss understands.
spokesperson for BNP Paribas declined to comment on the news, market sources
indicate that Gorra has left the ...
Petra Wikstrom, global head of Execution and Alpha solutions at BNP Paribas, talks to Profit & Loss about why FX TCA benefits from “a pragmatic engineering approach”.
Profit & Loss: When it comes to producing meaningful TCA, what are the big data challenges facing market participants?
Petra Wikstrom: Over the last five years we’ve seen a constant uptick in the electronification of FX, but the number of venues offering FX liquidity has increased far beyond that, which means that similar volumes are now offered across more venues.
P&L Report Card: These awards cover most aspects of the client experience when it comes to the various e-services and products on offer, indeed a read back through 15 years shows how the categories have changed to reflect the changing demands of the client base and, sometimes in the short term, new areas of competition. It is now two years since we started polling users on the overall experience and what they liked and disliked about a platform and we continue to be grateful that the reaction to the award was positive. The Client Experience Award really represents the core ethos of these awards – how good is the overall experience for someone using these platforms?
P&L Report Card: This remains the most interesting area of the FX market with not only customers continuing to study their best execution policies and more often than not, making changes, but also because the subject of market impact has really come to the fore over the past few months. This makes it an interesting time for the bank algo execution teams, because they are firmly front and centre when it comes to execution quality, and the quality of their strategies and market access is also open to more scrutiny than ever before.
P&L Report Card: In past years, this award has been given to the bank that I believed was most likely to make a serious challenge in the next 12-24 months, however, it is probably time to change that ethos just a little. The reason is yet more evidence of the impact of regulation on the FX industry – with just about everybody racing to be compliant in dozens of different jurisdictions, each with their own nuance on the rules, nobody has the budget or time to make a serious move.
For the second year in succession, UBS and JP Morgan have won the top two prizes in Profit & Loss’s Digital FX Awards.
For the fourth year in succession, UBS’s Neo won Best Platform, it was also named as Best Rates Platform and Best Structured Products Platform. Of note, UBS also won an unprecedented 10th Post Trade Award in a row.
Meanwhile JP Morgan reinforced its success from 2016 when it first won Best FX Platform by carrying off the award again in 2017. The bank also added three others to notch four trophies for the first time in the Digital FX Awards’ 15-year history.
Catherine Flax has left her role as managing director, head of commodities, FX and local markets, Americas, at BNP Paribas.
Although an official spokesperson for the French bank declines to comment on the news, Profit & Loss understands that Flax has indeed left BNP Paribas and will be working as an advisor to FinTech firms focusing on artificial intelligence in financial services. She remains based in New York.
Prior to joining BNP Paribas in 2013, Flax spent eight years at JP Morgan. During her time at JP Morgan she worked in a variety of roles in London and New York, before being named as chief marketing officer at the bank in 2012.
BNP Paribas has been fined $350 million as part of a consent order entered into with the New York State Department of Financial Services (DFS) for “significant, long-term violations of New York banking law” in the bank’s global foreign-exchange business.
DFS says its investigation found the improper conduct at BNP included collusive activity by traders to manipulate FX prices and benchmark rates; executing fake trades to influence the exchange rates of emerging market currencies; and improperly sharing confidential customer information with traders at other large banks.
Galen Stops looks at the drivers behind the appreciation of the Mexican peso and asks whether the rally can continue.
Few, if any, saw this coming.
After Donald Trump won the US presidential race in November 2016, USD/MXN went from 18.03 up to 20.89, and by the time of his inauguration in January 2017, the exchange rate was up to 21.58.
This depreciation of the peso seemed eminently reasonable at the time, given that on the campaign trail Trump had promised to renegotiate the North American Free Trade Agreement (Nafta) in America’s favour or terminate the agreement altogether, not to mention building a border wall between the US and Mexico at the latter’s expense.
Firms are increasingly demanding more sophisticated tools around FX execution analysis, explains Petra Wikström, global head of execution and alpha solutions at BNP Paribas.
Wikström says that for some time, firms have been looking at post-trade analytics to help improve their FX execution but that, increasingly, they are shifting their focus towards pre-trade analytics.
“Now a lot of the demand is coming in the pre-trade understanding of market impact: how it trades over the trading day across currency pairs, across time zones, across trade sizes, but also coming into that are whether there any differences across different venues,” she says.
A number of factors, including the increased need for an audit trail for FX execution and a desire to limit market impact, are driving the adoption of algorithmic execution tools amongst buy side firms, says Petra Wikström, global head of execution and alpha solutions at BNP Paribas.
Although Wikström says that the continuing automation and electronification of the FX market naturally leads to more firms broadly using algos as one of their execution tools, there are other specific factors driving the adoption of algo tools by the buy side.
Six banks are facing a class action lawsuit over alleged abusive practices involving the use of last look in their e-FX businesses.
The six, BNP Paribas (which has already been fined by the New York Department of Financial Services for, amongst other things, it’s broad use of last look), Citi, Credit Suisse, Goldman Sachs, Morgan Stanley and Royal Bank of Scotland face a claim from former retail broker-dealer Alpari (US) in the hundreds of million of dollars according to documents filed in a New York court this week.
BNP Paribas (BNPP) has agreed a $246 million settlement with the Board of Governors of the Federal Reserve System (FRB) relating to past misconduct in its foreign exchange business.
The settlement will be covered by existing provisions. This follows the announcement by BNPP of a settlement with the New York State Department of Financial Services on the 24th May relating to the same issue.
In reaching this settlement, the FRB acknowledged the bank’s group-wide remediation initiatives and the full cooperation of BNPP in the investigation.
BNP Paribas has hired Joseph Pinto in New York as head of electronic FX distribution for the Americas.
“Joe will work closely with the e-MMC, FX trading and sales partners to deliver our FXLM.COMM e-FX targets in Americas,” a spokesperson for BNP Paribas tells Profit & Loss.
In his new position at the French bank, Pinto will report locally to Subodh Karnik, head of FXLM.COMM North America, institutional sales, and globally to Joe Nash, head of European FX structuring.
Joe Café, vice president, global markets and Amish Naik, head of algo iX sales and product, Americas, will both be part of Pinto’s team at BNP Paribas.
LCH has introduced a new type of client account within its SwapClear service.
The account allows buy side clients to deliver collateral directly to the clearing house and to retain beneficial title to it. Segregation at an International Central Securities Depository (ICSD) ensures that such securities collateral remains client-specific.
This aims to increase operational efficiency and also eliminates the transit risk arising where a client delivers collateral to the clearing house via its clearing member.
JP Morgan is the first clearing member, and Aviva Investors is the first buy side client, to use this new account type. BNP Paribas and HSBC have also confirmed their readiness to support the new account structure.
BNP Paribas has become the latest bank to formally partner with execution analysis specialists BestX, with the initial focus of the partnership being on the provision of post-trade transaction cost analysis (TCA) on algorithmic FX transactions, which will enable clients to gauge the quality of their execution versus a number of benchmarks.
If the client requests it, details of their algorithmic transactions will be automatically shared with BestX which will in turn will perform its own TCA on the transaction, BNP explains.
Nicholas Zografos has left his role as director in derivatives clearing services sales (DCS) and marketing for the Americas at BNP Paribas, according to market sources.
Based in New York, Zografos joined the French bank in December 2014, having left Bank of America the previous September as part of a broader reduction of its FX team.
Zografos joined Bank of America in 2005 and was a director within its prime brokerage group at the time of his departure. Prior to that position he spent eight years at the private bank, Julius Baer.
Neehal Shah has joined BNP Paribas as global head of G10 FX trading with immediate effect. He will be based in London and report directly to Adrian Boehler, global co-head of FXLM and commodity derivatives.
Shah joins after 18 years at Deutsche Bank, where he held a number of senior positions including global head of currency options and complex risk trading, head of FX trading Americas and global head of FX investor sales. He was also global head of markets electronic sales, as well as a member of Deutsche's Markets Electronic Trading Management Committee.
Confirmation was not available at press time but market sources tell Profit & Loss that Nick Hamilton has left FastMatch and will join BNP Paribas in London next week in a senior e-FX sales role.
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.
Profit & Loss understands that Chris Cox has left the Bank of England and is joining BNP Paribas in London.
Cox is believed to be joining the bank in a new role leading the bank’s response to the FX Global Code of Conduct, ensuring it fulfils its intended Statement of Commitment to the Code and strengthening internal procedures to ensure compliance with the Code’s principles.
Cox has been at the Bank of England for nine years, starting as an FX and money market trader and analyst.
BNP Paribas USA has pleaded guilty to participating in a price-fixing conspiracy in the FX market, the US Justice Department (DoJ) has announced.
According to the one-count information filed last week in the US District Court for the Southern District of New York, between September 2011 and July 2013, BNP conspired to suppress and eliminate competition by fixing prices in Central and Eastern European, Middle Eastern and African (CEEMEA) currencies, in violation of the Sherman Act, 15 U.S.C. § 1.
Ronan Julien, global head of commodity derivatives e-distribution at BNP Paribas, talks about how the bank is doing things differently in the commodities space.
Profit & Loss: What do you think is differen about your approach to listing commodities on your e-trading platform?
Ronan Julien: The way that commodities trade is largely the same as it was 10 years ago. However, the demands from clients on the one side and regulators on the other have continued to evolve and so we looked to other asset classes for inspiration to help solve this disconnect.
BNP Paribas has seen a raft of departures from it’s FX algo team over the past few months.
Profit & Loss understands that in London Silviu Vlasceanu, a senior quantitative analyst, Farzana Nanji, who worked in FX automated client execution, Tom Appleton, the head of FX algo execution, Ismail Zekhnini, an e-FX algo trader and Shameer Subedar, who worked within the e-FX algo team developing agency based algos, have all left the bank. In addition, sources indicate that in Singapore, Ashvin Parkash, head of e-distribution for Asia who was part of the same team, has also left BNP Paribas.
Sandra Francisco has joined BNP Paribas in the bank’s New York office.
A spokesperson for the bank declines to comment on her appointment, but Profit & Loss understands that Francisco started in her new role on Monday and will be focused on selling FX prime brokerage and DEC products to institutional clients.
Francisco will report locally into Ira Rudman, director, head of institutional sales FXPB/DEC, Americas, at BNP.
She joins from Wells Fargo after one year working as a director at the US bank. Prior to that, Francisco was at Deutsche Bank, where she was a director, focused on prime brokerage sales, FX hedge fund sales and derivatives clearing.
Before joining Deutsche in 2008, she worked for over seven years as a vice president at Goldman Sachs, focused on credit sales and prime brokerage sales.