BNP Paribas launches its own platform - FX eTrader

Joining the host of large banks who are now becoming more and more interested in the institutional FX market is Paris based BNP Paribas. With more than 200,000 employees BNP is one of world's largest banks and was ranked world's 13th largest company by Forbes in 2008. Along with the acquisition of AIG's foreign exchange prime brokerage platform this seems like a strong move by BNP.

The new platform is a key part of BNPP's FX strategy to compete with other banks' FX e-trading platforms, including Deutsche's AutobahnFX and Barclays Capital's BarxFX. BNPP is aiming FX eTrader at regional banks, hedge funds, and corporate and institutional clients. This is a new target market for BNPP; its old internal platforms, Click FX and FX dealer, were, Cohen confessed, "not strong enough" and "incomparable to FX eTrader".

"This is a pure consequence of market-share acquisition through new clients and deepened penetration overall," added Francois Boisson, European head of the FX sales institutional client group at BNPP in London.

FX eTrader, based on software from Java, a third-party vendor, took a year to develop. Its network connectivity is provided by BT Radianz but the pricing engine, aggregation system and Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term management system are all proprietary to BNPP. In addition, BNPP uses an in-house aggregator based in London for all its trades. FX eTrader offers spot, forwards and Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term, and supports 57 streaming currency pairs, 20 indicative emerging markets currency pairs and 600 pairs in total.

I wonder though when will BNP also start offering FX trading to retail clients as well? If Citi and Deutsche Bank decided that this segment was interesting enough I'm sure that BNP will follow as well.

Deutsche is using FXCM Trading Station white label while Citi white labelled Saxo Bank.