[ O U T S O U R C E D T R A D I N G S U R V E Y ]
Chart 2 Chart 2
as our needs evolved ”. Coverage , Operations and Post-Trade , and Client Service and Relationship Management are only just below this , with each category scoring 5.91 . When it comes to Coverage , once again BNP has made notable changes according to its clients , with multiple respondents praising BNP for their support and excellent quality of exchange . More specifically , one client highlighted how BNP ’ s “ asset class coverage has increased as per our requirements ( recently with CLOs ), which has been very satisfactory ,” suggesting that BNP is listening and reacting to its clients ’ requirements , and in turn , this is being noted and appreciated .
In fact , not a single category scores below Good ( 5.00 – 5.99 ) with IPO Process and Allocations also scoring a solid 5.20 . When it comes to IPO Process and Allocations , what we were looking to understand is how the process worked for managers and if they felt there was a benefit to using an outsourced trading firm to apply for and get allocations in IPOs . Although this category sits in the Good range , BNP Paribas clients are very complimentary of the service provided , commenting how “ BNPP Dealing Services manage for us primary deals on equity ( i . e . IPOs ), but also bonds and CLOs , in a very efficient way .”
While Table 1 shows the overall scores , Chart 2 looks at the breakdown of ratings for each category . It appears over 45 % of respondents rated Operations and Post-Trade as Excellent , with Onboarding and
Execution both seeing over a third of respondents score these categories as Excellent . Note that not a single category scored below Satisfactory .
Looking forward , BNP Paribas believes that T + 1 will increase operational efficiency pressure , which will have a positive impact on the outsourced trading industry as a whole . In the future , BNP believes there will be “ need for a robust operating model between execution and settlement , which may benefit providers like BNP Paribas ”.
With a reported growing interest among asset owners and managers towards outsourcing at least part of their trading activities , the future is looking promising for BNP Paribas as we monitor how things fair over the coming 12 months .
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