Trading Debt Auction Site

BNP Paribas, one of Europe’s leading banks and an established global financial player, wanted to create a public web site in which debt-related financial instruments could be securely bought and sold. The company wanted a system that would allow registered subscribers to trade debt in an auction format or through fixed, “firm” prices in real time. Security, speed, and ease of use were essential.

The Solveda team showed professionalism and flexibility throughout the lifetime of the project. Project deadlines were met under demanding schedules, and their team was responsive to modifications based on new requirements for the system. I would strongly recommend Solveda.

Vice President,Fixed Income Systems, BNP Paribas

Solution

  • Solveda created the TradingDebt application for BNP Paribas using the SOFIA development framework, Java, J2EE, and SQL Server.
  • TradingDebt enables authorized participants to place and trade debt related financial instruments within a secure environment.
  • Features include securID authentication, buy-and-sell auction capabilities, firmoffer sales, a comprehensive alerting mechanism that enables sellers and buyers to complete the deal, and counter-party functionality that lets users maintain unique relationships
  • TradingDebt empowered BNP Paribas with a fully functional online marketplace for debt paper

Trading Debt in Action

  • Sales Listings: Sellers can see at a glance their current listings and past history, and quickly add new instruments for sale. TradingDebt supports all types of loan and receivable debt paper and allows holders to fully describe notes they can even upload supporting documentation. TradingDebt supports both auction and firm-offer trading styles. The Firm Offer component has effectively established a formal, real-time trading site for debt instruments. Offers can be made using open- or sealed-bid auction styles.
  • Counter-Party: Each registered user can set default counterparty relationships to ensure adherence to corporate credit risk and compliance rules. Counter-party relationships can be customized for each offer, and credit limits applied. Only those parties with access to each offer are allowed to bid. Further, TradingDebt allows bidders the same counter-party functionality, so potential buyers are not authorized to bid on paper in which the holder does not comply with corporate rules.
  • View Debt for Sale: The View Debt for Sale feature offers a complete listing of all debt that is currently for sale and under offer. The list includes details of the instrument, reserve price, and time remaining for the auction. It also offers a potential bidder a simple one-click bid component.
  • Indicative Bid / Offer: The Indicative Bid /Offer functionality allows TradingDebt to effectively maintain a daily Pricing Sheet for debt instruments. All registered users are encouraged to enter indicative levels of interest.
  • Place Bid: Registered bidders may view the current offer details, follow the auction clock, and place a bid, all within the simple-to-use Place Bid facility.