BNPP sets ‘axe trap’ to expose skew sniffers
French bank deploys real and fake axes plus AI trackers to gather data for identifying predatory clients
BNP Paribas has been taking the fight against clients abusing their pricing skews to a new level, putting out a mix of real and fake axes and using artificial intelligence (AI) to dynamically identify toxic counterparties that it can cut off from future beneficial pricing.
Information around pricing skews is precious to liquidity providers. When a dealer is axed to trade a particular side of a currency, it may skew its pricing – that is, move either the bid or the offer closer to the market’s mid
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