French banking group BNP Paribas has launched a 'hybrid' securities clearing service as it looks to cash in on the proliferation of new equities trading platforms for investment and fund managers launched in the wake of MiFID.
The bank is working with two clearing providers on its hybrid service, which is aimed at both buy-side trading participants and the sell-side.
The move is a response to the proliferation of new trading platforms for investment and fund managers that have emerged in the wake of MiFID.
Traditionally investment and fund managers go though brokers to execute trades. But the new alternative trading systems (ATSs) - especially so-called 'dark pools' - bypass the brokers and are aimed directly at investment and fund management clients.
Jason Nabi, head of UK financial intermediaries at BNP Paribas, told FT reporters that this development has resulted in the need for a new type of clearing.
In a statement to Finextra, Nabi says the bank has "set out a strategy aligned to working with new MTFs and CCPs to develop a purpose built model that addresses the different needs of both the buy-side trading participants and the sell-side".
"In addition, we are providing a full outsource capability for the new platforms when it comes to running operational accounts and reporting, in effect being their back-office," he adds.