BNP Paribas is partnering with best execution algorithm order Analytics provider Itarle. The company is going to deliver to buy-side clients of the bank access to real-time Transaction Cost Analysis (TCA).
The product at the center of the offering is called Itarle Vision. The goal of the partnership is to deliver an independent analysis of transaction costs.
BNP Paribas' clients will have direct access to Itarle Vision to ensure that the bank is complying with its best execution obligations. Independently verified and unbiased TCA services have become essential for analyzing their performance.
TCA and MiFID II
The analytics are delivered in real-time, with clients being able to make order decisions based on live flows. The product is also enabling them to potentially reduce costs during the lifecycle of an order.
A breakdown of a detailed set of historical data is available to the bank clients via a cloud-based service. Aside from a detailed TCA analysis, clients of BNP Paribas will be able to compare the execution rates to other banks.
Elaborating on the capabilities of the product, the Head of Product Development, Derivatives Execution & Clearing at BNP Paribas, Gael Pottiez, said: “This tool provides our clients with full transparency over their execution quality, in real-time.”
“With the implementation of MiFID II and further Regulation anticipated addressing best execution, we believe this type of service will be expected across the industry and we are pleased to be leading the way,” Pottiez explained.
According to the founder of Itarle, Paul Lynch, MiFID II has driven the need for accessible and scalable analytical services. Buy-side clients demand to evaluate the execution quality received from their brokers.
"Ultimately, this service will help the clients of BNP Paribas to reduce market impact and improve execution performance and productivity,” said Lynch.
The TCA service also allows BNP Paribas clients to assess the quality of orders that have been executed using a mixture of both manual and algorithmic execution. This enables clients to evaluate multiple execution methods across the BNP Paribas service offering.
