BNP Paribas said it will make use GTS technology to improve pricing for its clients and boost its market share of US treasury trading. Olivier Osty, executive head of global markets at BNP, said, based on the partnership, the bank aimed to boost its share in US Treasury trading from 1.5 to 5% over the next 12 to 18 months. The entry of tech players such as GTS to the US Treasury market has squeezed margins for banks on a business that they see as vital to their top clients. Linking with GTS allows BNP to retain those clients – relationships that are of less interest to GTS – while handing over much of the operations to the trading firm. JPMorgan had concluded a deal with Virtu Financial to hand over pricing of some of the most heavily traded and least profitable Treasury trades. More than two years earlier, Credit Suisse became the first bank to embark on a similar deal with Tower Research.
