BNP Paribas is streamlining its manual workflow for non-standard, complex trades, to support its global asset manager client base.
Using technology developed by ipushpull, a real-time data sharing and workflow platform, the bank has implemented PPQ standardised messaging which is designed to deliver greater efficiency, reduce operational and compliance risk and support trade negotiation.
Complex transactions between asset managers and sell side firms, such as liability-driven investment (LDI) trading and other complex workflows, often require a combination of digital and voice trading interactions in addition to tasks performed using chat, email and Excel spreadsheets. Operational risk associated with emails, file sharing and copy-paste, is also higher.
PPQ is a pre-trade syntax which standardises and facilitates the negotiation process between the buy and sell side through a set of integrated data sharing and data-driven tools. It uses financial networks like Symphony to deliver the standardised syntax within private bilateral chats to allow trading and sales to communicate detailed information.
Chatbots are designed to interpret key data within those messages, display them within a custom application and allow the end user to drive the workflow from a single screen. Data mapping transforms incoming and outgoing data into the required format, creating an extensible solution to interoperate between new and existing standards. The inclusion of structured data objects within messages, containing instrument definitions, event descriptions and a wealth of other metadata, can further aid automation of pre-trade workflow.
Ben Harvey, senior LDI and macro rates sales at BNP Paribas noted “Complex derivatives are the next area where we are focused on process automation and improvement. This also underlines our approach to the next generation dealing room and to further develop the non-price element of our customer offering.”
Matthew Cheung, CEO of ipushpull, said, “We are delighted to see the positive impact that PPQ has had on BNP Paribas’ operational workflow and risk mitigation. Our unified modular and cloud-based approach enabled us to rapidly deliver this solution into production and provide quantifiable benefits.”
In February, NatWest Markets revealed it had made a similar development to support its fixed income trading.
©Markets Media Europe, 2021
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