Vince Martin, Head of ECG/CEEMEA e Commerce and Flow FX

Julian Hooker, ECG/CEEMEA e Commerce and Flow FX

June 2014

BNP Paribas Electronic FX Execution – The Changing World

Russia – June 2014

2

10 years ago, there were only 10million users on Facebook and the iPhone was still 3 years away.

In the last decade we have seen a revolution in the way products and services are bought, sold and accessed…

…. Foreign Exchange is no different.

The Changing World

June 2014

June 2014 3

Over the past 25 years there has been a drive and desire to provide quicker,

smoother and easier price distribution in financial markets.

This has been led by both Client demand and the Banks desire for efficiency.

With the massive improvements in technology in recent years Its apparent

that the future of FX trading and price provision is in cyberspace.

Over the past 20 years there has been a drive and desire to provide quicker, smoother and easier price distribution in financial markets overall and specifically in FX

This has been led by both Client demand and the Banks desire for efficiency

With the massive improvements in technology in recent years , it is apparent

that the future of FX trading and price provision is in cyberspace.

The Electronic Revolution

Electronic Execution – The Global View

4

The market shift from voice to electronic execution continues year on year

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Equities Futures andOptions

FX & MoneyMarkets

Bonds Swaps (IRSCDS)

Commodoties StructuredProducts

2010

2012 Estimate

2014 Estimate

BNPP

2013

?

Listed Derivatives

Electronic to Voice

ratio

• To BNPP- client ‘relevance’ is priority

• It is critical that the Bank performs for its Clients

• Provision of cutting edge technology gives our clients an ‘advantage’

June 2014

Russia – What's The Story?

June 2014 5

The Russian ‘e’ market

•Slow start•Catching up fast •Exponential growth in last 2 years•Highly competent client base adopting latest technology •Provision of competitive pricing has taken away the competitive advantage of the telephone•Paperless confirmation process has made Electronic execution the platform of choice

• reduced cost• Improved efficiency

•Investment and focus by Banks and multi bank platform providersin the region increasing, further fuelling growth

• Market growing from strength to strength

• Euromoney data shows a 21% increase in the amount of

business executed electronically in Russia 2013 vs 2012

• Market is now in excess of $1.5 trillion pa

• 2014 no sign of slow down…??

BNPP – Electronic Provision in Russia – Impressive Growth

June 2014 6

The recently published Euromoney poll is regarded as the best indicator of a banks FXperformance and presence within a region

Euromoney Data 2014 survey results :

BNPP Russia gained overall market ranking – 9th in 2013 (vs 17th in 2012)

In Electronic Trading with Corporates BNPP Russia – 4th in 2013 (vs 15th in 2012)

•Outstanding Electronic growth and performance by BNPP in Russia – TOP 5

•BNPP determined to grow further in this key market

Electronic Provision Of Pricing BNPP

June 14

Electronically BNPP has the technical ability and expertise to provide the best pricing to clients in a seamless and efficient manner

Multi Bank Platforms - Bloomberg, Fxall, 360T etc

BNPP contributes pricing to these multi bank platforms ensuring client relevance and

support

Often clients are mandated to trade on these forums

Cost of “Brokerage” is becoming restrictive with spread compression

Cortex FX

Cortex FX is BNPPs award winning electronic proprietary platform

Delivers highly competitive bespoke pricing to our clients

Award winning products, function and liquidity

7

So What's The Story – BNPP’s side of the Electronic Fence

June 2014 8

Historically BNPP has always supported every electronic channel – 360T,Fxall,Currenex , Bloomberg FX – this wasdone with no price differential between platforms

Picture is changing -•Cost /Brokerage•Clients Requirement•Liquidity•Latency•Functionality

Given the financial landscape and desire for cost efficiency it is essential we share information about the evolution of the electronic marketFor example - Brokerage fees make pricing short dated business via 360T uneconomical at present

- Bloomberg terminals cost client USD 10k pa although they brokerage free for banksCompetition and technology has led to price compression across all currency pairs never witnessed before

Therefore in order to ensure continued support on a mutually beneficial basis BNPP believes we have to work together with our clients in an “open dialogue” manner

00/00/0000 9

Welcome to the NEW AGE

@BNPParibas

10

CORTEX FX is BNP Paribas’ advanced multi-product FX trading platform

The ‘Gateway’

� All BNPP products and services can be accessed from one portal

� Employing cutting edge trading technology

� Market access is just one click away

� Intelligent electronic products, tools and services from BNP Paribas.

� Spot/Forward/Outrights and Orders

� Access our FX Strategy Research, Charting & Intelligent Hedging execution Algos

June 2014 11

� Although BNPP were relatively late to the game, the bank’s strength in traditional fixed income services reflects well on our electronic offering.

� Cortex FX is a direct result of extensive research, I.T development and understanding our clients diverse needs.

� BNPP have invested heavily in new technology and infrastructure. Our solutions are not heavy legacy systems. They have been designed with new age technology enabling them be agile and able to adapt in the ever changing market dynamic.

� Technical Research via Global Markets – augments the overall client service

CORTEX FX – USP’s

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In Conclusion …

Fair & consistent

pricing

Multi Product,

Cross Asset,

seamless execution

And Post Trade Services

“Gateway”

Excellent client feedback,

take up and

recommendations

Robust/Reliable

easy to use

System

Unique GUI experience

Market Leading

Performance “up Time”

running at 99.5%

� Cortex has outstanding price support and liquidity

� Pricing and technical support available 24hrs a day

� Extends and enables a strong Client/Bank relationship

� Intelligent & innovative electronic products, tools and services

� Market leading Algo and Options technology

� Cortex is the access point to a spectrum of BNP Paribas products and services

� Execution tile and blotter tailored to your needs

� Historic deal monitor

� STP Integration with existing treasury systems

� 99.95% uptime through dedicated architecture – used internally by our own Sales and Trading teams

�

�

�

At BNPP we provide a stable, reliable and efficient platform with transparency, adaptability and maintain dialogue between client and

Bank

June 2014

13

Whether you want to develop innovative trading strategies, execute trades or monitor and evaluate your trading activity, CORTEX FX has been

designed to offer you a fully integrated trading environment that is simple to use and allows you the freedom to concentrate on taking advantage of every

trading opportunity.

And did we mention its FREE … ??

THANK YOUTHANK YOUTHANK YOUTHANK YOU

June 2014

This document is intended solely, to the extent applicable, for eligible contract participants as defined in U.S. Commodity Exchange Act or professional clients and eligible counterparties as defined in the Markets in Financial Instruments Directive 2004/39/EC (“MiFID”) or for persons that may otherwise enter into contemplated transactions and receive this document under applicable law.

France: This document is directed at (a) professional customers and eligible counterparties as defined by the Markets in Financial Investment Directive and (b) to (i) persons providing investment services relating to portfolio management for the account of third parties (personnes fournissant le service d'investissement de gestion de portefeuille pour compte de tiers), and/or (ii) qualified investors (investisseurs qualifiés), acting for their own account, as defined in, and in accordance with, Articles L.411-1, L.411-2 and D.411-1 to D.411-3 of the French Code monétaire et financier. BNP Paribas SA is incorporated in France with limited liability and is authorised and regulated by the Autorité de Contrôle Prudentiel (ACP) and the Autorité des Marchés Financiers (AMF).

US: This document is being distributed to U.S. persons by BNP Paribas Securities Corp., or by a subsidiary or affiliate of BNP Paribas that is not registered as a U.S. broker-dealer to U.S. major institutional investors only. Any U.S. person receiving this document and wishing to effect a transaction in any security discussed herein, must do so through a U.S. registered broker dealer. BNP Paribas Securities Corp., a subsidiary of BNP Paribas, is a broker-dealer registered with the U.S. Securities and Exchange Commission and a member of the Financial Industry Regulatory Authority and other principal exchanges. BNP Paribas Securities Corp. accepts responsibility for the content of a report prepared by another non-U.S. affiliate only when distributed to U.S. persons by BNP Paribas Securities Corp. Some of the securities mentioned in this document have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to a U.S. person absent registration or an applicable exemption from the United States registration requirements.

UK: BNP Paribas London Branch (registered office 10 Harewood Avenue, London NW1 6AA; tel: [44 20] 7595 2000; fax: [44 20] 7595 2555) is authorised and supervised by the Autorité de Contrôle Prudentiel and authorised and subject to limited regulation by the Financial Services Authority. Details about the extent of our authorisation and regulation by the Financial Services Authority are available on request. BNP Paribas London Branch is registered in England and Wales under no. FC13447.

HK: For the purpose of distribution in Hong Kong, this document is directed at ‘professional investors’ as defined in the Securities and Futures Ordinance and any rules made under that Ordinance. BNP Paribas Hong Kong Branch is registered as a Licensed Bank under the Banking Ordinance and regulated by the Hong Kong Monetary Authority. BNP Paribas Hong Kong Branch is also a Registered Institution regulated by the Securities and Futures Commission for the conduct of Regulated Activity Types 1, 4 and 6 under the Securities and Futures Ordinance.

Singapore:BNP Paribas Singapore branch is regulated in Singapore by the Monetary Authority of Singapore under the Banking Act, the Securities and Futures Act and the Financial Advisers Act. For the purpose of distribution in Singapore, this document is prepared for Accredited Investors, Institutional Investors and Expert Investors within the meaning of the Securities and Futures Act, Chapter 289. This document is not intended for investors in Singapore who are not Accredited Investors, Institutional Investors and Expert Investors and it should not be distributed to any such persons.

Japan:This document is being distributed to Japanese based firms by BNP PARIBAS Securities (Japan) Limited, Tokyo Branch, or by a subsidiary or affiliate of BNP Paribas not registered as a financial instruments firm in Japan, to certain financial institutions defined by article 17-3, item 1 of the Order for Enforcement of the Financial Instruments and Exchange Law of Japan. BNP PARIBAS Securities (Japan) Limited, Tokyo Branch, a subsidiary of BNP Paribas, is a financial instruments firm registered according to the Financial Instruments and Exchange Law of Japan and a member of the Japan Securities Dealers Association. BNP PARIBAS Securities (Japan) Limited, Tokyo Branch accepts responsibility for the content of a document prepared by another non-Japan affiliate only when distributed to Japanese based firms by BNP PARIBAS Securities (Japan) Limited, Tokyo Branch.

(c) 2012 BNP Paribas. All rights reserved. Cortex may only be used and accessed by clients who have obtained the prior authorisation of BNP Paribas to do so, which will be granted (and can be revoked) at BNP Paribas' sole discretion. Use of and access to Cortex is subject to terms and conditions, which may be amended by BNP Paribas from time to time.

Disclaimer