Technological disruption is an unavoidable reality Asia’s structured product distribution market and single dealer platforms will be critical for investment banks that wish to do more than just passively capture generic flows, when strong markets motivate new transactions.
For the second consecutive year, BNP Paribas’ Smart Derivatives platform has garnered critical acclaim from the market, not only for due to the underpinning manufacturing capabilities of the investment bank but also because of its stellar efficiency, user-friendliness and a plethora of relevant functionalities.
“This year, we had two major points of focus to improve our platform: performance and user experience,” says Frederic Dussaux, co-head of electronic market making & commerce, APAC, global markets at BNP Paribas.
“On performance, we have significantly enhanced our pricing speed, especially in light of increased volumes; and on user experience, we started by improving the post-trading user interface on secondary modules, taking client feedback on what to display and where.”
Testament to its success are the quantitative achievements BNP Paribas can boast in the region. Its pricing speeds increased by 30% on average and the number of trades executed surged approximately 60%. Even so, Dussaux stresses that it is the “full package” that counts and not just single components.
“Although we are proud to win the award for the best single dealer platform, it is important to note that we have a continuum of offerings from e-mail pricer, fixed connectivities, single dealer platform to multi-dealer platforms,” he explains. “Our clients are accessing our solutions through various and changing channels, and it is crucial that they have a similar experience regardless of which one they choose. We are convinced about our competitive position and it is due in part to the fact that our clients appreciate the full package.”
The structured product market in Asia continues to demonstrate polarisation between the automation of flow product execution and manual dealings in structuring non-generic solutions.
Should the French investment bank continue to back its business with a robust offering of diverse payoff structures and underliers, its platform will be well-positioned to maximise client demand in Asia. This certainly did not go unnoticed in 2017, with the private banking industry naming BNP Paribas’ Smart Derivatives Platform as the industry’s Best Single Dealer Platform.