Founded in: 1848 (as BNP), 1872 (as Paribas) and in 2000 (as BNP Paribas via merger of BNP and Paribas)
Headquarters in: Paris, France
Formed in 2000 as a result of the merger between Bank Nationale de Paris and Paribas, BNP Paribas is a global bank and liquidity provider that is present in 75 countries. With over 30 million retail banking clients, BNP Paribas is one of the biggest global banks.
The bank also has a large presence in the forex market segment. Through its corporate and institutional banking division, BNP Paribas is one of the leading global Foreign Exchange (FX) liquidity providers. BNP Paribas provides liquidity to a wide range of forex market players. BNP Paribas was voted as the Best Bank Algorithmic Trading Technology Provider in 2016 at the FX Week e-FX Awards.
BNP Paribas FX Solutions
Clients need a liquidity provider that can support large dealings in foreign exchange, treasury management as well as hedging of currency risks. BNP Paribas provides FX solutions that support clients that manage their forex deals or clients who outsource/automate components of their currency trade flows.
Direct, On-Demand FX Execution services
Through the global forex dealing desks in Paris, London, Dublin, Luxembourg, New York and Sydney, BNP Paribas provides global coverage for FX clients in the various major forex trading hubs. Clients can obtain forex rates electronically (using multiple FX platforms) or through voice brokers (telephone). BNP Paribas presents several forex tools such as:
- FXLink our proprietary trading tool
- Tools which link with other external platforms such as FX Connect, FXAll360T, Bloomberg FXGO.
Automated Forex Trading
BNP Paribas presents a forex platform which is fully automated and primed to enable forex execution of clients’ trades. Via BNP Paribas’s liquidity provider service, clients get access to wholesale forex market rates with pre-agreed spreads.
BNP Paribas enables clients to execute hedging strategies from the start to the end of the process. Tools that aid identification of forex risks, forex exposure calculations, transaction executions and reporting are provided to clients.
BNP PARIBAS’s Algorithmic FX Solutions
BNP Paribas has developed what it terms the fourth-generation algorithmic software that are capable of providing access to all the data used by the strategy during trade executions. This is aimed to put maximum control of the entire process in the hands of the trader.
The algos also carry out the following functions:
- Present in a graphical manner, trade metrics such as market depth, liquidity and trade conditions.
- Provides a cost breakdown of the various methods of trade execution for each specific trade.
This is to enable the users execute their trades under the best possible conditions at the most cost-effective rates.
BNP Paribas Liquidity Provision Services
Through its various divisions and banking offices across the world, BNP Paribas is able to provide liquidity to a wide array of clients. Some of these liquidity provision services are as follows:
- The World Bank’s 10-year Sustainable Development Bonds, which will be denominated in Australian Dollar (AUD) and New Zealand Dollar (NZD) were listed with BNP Paribas serving as liquidity provider for this transaction.
- In 2014, BNP Paribas joined the FXSpotStream’s price aggregation service as a liquidity provider.
- BNP Paribas was appointed as the primary liquidity provider for the offshore Renminbi market in Hong Kong by the Hong Kong monetary authority in 2014. In this role, Renminbi funding will be provided to offshore institutional and corporate clients.
- BNP Paribas is also a liquidity provider in the TradeWeb Corporate online corporate bond market.