BNP Paribas launches matching algo

Launched in June as part of its Cortex institutional platform, Paribas’ IX Match algo identifies counterparties who either exactly or partially match.

BNP Paribas launches matching algo
Cortex iX Match

Launched in June as part of its Cortex institutional platform, Paribas’ IX Match algo identifies counterparties who either exactly or partially match. Asif Razaq head of FX algo execution at the bank explains, “Say we have client A coming to the market to buy 100m/$ and we have client B that wants to sell 80m/$. When client B enters his order, the system will recognise that there is opposite interest there, and rather than both algos going to market and creating disruption, the system will create a match. It will match client B off in full. Client A will receive a single fill for 80m and his 20m balance will run into the inter-bank market in the normal way.”

Summarising the benefits that IX Match offers Razaq says, “The trade is not seen in the market. It is a fully confidential and transparent service. It gets you filled at half the spread, and it would be impossible to out perform that price anywhere on the street. The post trade report will list what proportion of the trade was matched and the price it was matched at.”