BNP Paribas operates a centralised pan-Asian program trading (PT) desk in Hong Kong, providing one point of contact into every Asian market. The firm provides a sales-trading service to its PT clients, providing market insight and views utilising information from its derivatives desks. In addition, the program trading desk can provide aggressive agency or risk quotes for any client benchmark on a country, regional, or global basis.
Orders can cross against other worked orders on the cash or PT desk as well as cross on BNP Paribas’ BIX matching engine against natural liquidity from the BEATS DMA/Algo desk and substantial delta-one and derivatives hedging activity.
Furthermore, the firm uses its smart order router to access multiple venues in markets where there may be alternative sources of lit liquidity.
BNP Paribas covers traditional long-only managers for inflows, outflows and rebalances, passive clients for all worked orders, including index rebalance trade and quantitative funds for long-short strategies. The firm’s business is evenly divided between Asian flows from local clients and imported or exported flows to and from BNP PT desks in the US and Europe. BNP Paribas flows are roughly 60% agency and 40% risk where clients are looking to lock in their performance.
Pre- and post-trade analytics
BNP Paribas offers insight into portfolio trades, including estimated impact cost and estimated time to completion on a per-name or basket basis. It also offers recommended trading strategies per name to minimise expected implementation shortfall.
The bank’s post-trade analysis offers detailed analysis of trade performance vs a wide variety of benchmarks, including volume-weighted average price, arrival price, participation-weighted price, open, high, low and close.
BNP Paribas aims to be able to cover any client anywhere in the world to trade on a risk or agency basis into virtually any market with seamless execution and reporting.