SELL SIDE

BNP Paribas teams up with market maker for US Treasuries

BNP Paribas and GTS will work together to improve liquidity and pricing for clients trading US Treasuries.

By Hayley McDowell hayley.mcdowell@strategic-i.com November 16, 2017 9:56 AM GMT

BNP Paribas has teamed up with electronic market maker GTS to provide its clients with better liquidity, tighter spreads and improved pricing in US Treasuries.

The partnership will see BNP Paribas implement GTS’ trading and technology tools, alongside the addition of the market maker’s liquidity into its framework.

A team from both firms will use a mutually developed technology platform which aims to provide the French bank with access to greater liquidity, with a view to improve execution quality for clients.

Olivier Osty, executive head of global markets at BNP Paribas, explained the US market is an important one for clients of both firms, who are focused on finding 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,” he said.

Ari Rubenstein, co-founder and CEO of GTS, described the partnership as a “transformative moment for capital markets and reflects the next phase in the evolution between banks and electronic market makers”.

The New York based market maker uses artificial intelligence technology and pricing models, and currently accounts for 3-5% of daily cash equities volume in the US.