Due to a pressing regulatory environment, electronic trading adoption pace will keep increasing in the next few years. I foresee that the electronic trading in fixed income markets will grow quicker than it has so far, and using more of lower latency technology. Right now, we can already see the interests of some specialized firms trained to reproduce the job done for years in the equity derivatives space by leading CIBs. Due to the exponential computational growth and low latency trading, we are living in an era of constant evolutions. The high frequency and low latency trading aim to lower the cost per ticket, retain market shares and remain competitive to our clients benefit. Most of the interactions we have with customers from an IT standpoint are always around stability and reliability of the service. We must be not only swift in our hedging and pricing toward our clients, but consistent and available.
“Due to the exponential computational growth and low latency trading, we are living in an era of constant evolutions”
The BNP Paribas Electronic Trading Systems and e-Solutions platform was mainly driven by “time,” and back to the origination of this project in 2010, we - IT - were asked to build an innovative and resilient platform which could deliver a 24/6 service with 99.9 percent global uptime. This platform not only came with the best of bread in Technology but came with a new dedicated team of professionals in three continents, guarantying maximum uptime and minimum downtime. By using our Cortex platform and leveraging our technology, we have since then undergone a second evolution. Our platform was ready for it and we could leverage this single-dealer platform to accommodate multi-dealers.
One of our main challenges in running a Formula One team is to attract and retain talents. In order to adapt ourselves to the millennial generation we are going through a cycle of simplification and digital transformation. As it’s known that the younger generation is not interested in working on the same subject for years and years, we can no longer develop the level of expertise historically required in that field. Because of this new paradigm, we are completely transforming the core infrastructure for a more modern approach with less expertise driven processes. The focus becomes more on the product and service side than on the underlying infrastructure.
Until recently, every bank had a project on public cloud because it was fashionable and nobody could defend a private cloud approach only. However, I can clearly see a trend in the industry today where large banks are claiming staying on private cloud. Private or on premise cloud remain very competitive and is forecasted to be even more. Cloud technology is now made available to the wholesale market, allowing banks to focus on products and services rather than building a cloud itself. We at BNP Paribas Corporate and Institutional Banking in the US are aiming for a faster time to market (TTM) to deliver these new products and services to our clients and end users. However, we are designing the future around agility and connectivity in order to connect more and more third-party platforms running on hybrid or public cloud, leveraging our planet of collocations and private connections which is a significant competitive advantage.