The Hindu Business Line : BNP Paribas executes first Direct Market Access order on NSE

Mumbai, July 14 BNP Paribas Securities Asia said it has successfully executed its first Direct Market Access (DMA) order on the National Stock Exchange through brokerage Geojit Financial Services.

This is arguably the first DMA transaction since the market regulator SEBI allowed its introduction in April this year.

BNP Paribas Securities Asia did not disclose the details of the deal but this is the 15th exchange in the company’s DMA offering across Asia, it said in a statement.

The DMA transacting facility allows institutional investors such as FIIs and mutual funds direct access to the market through terminals, somewhat in the way that sub-brokers can.

Specific agreement

The broker has to enter into a specific agreement with the clients for it makes possible the DMA facility.

The client can use the facility only to execute his own trades and not trades on behalf of any other person, SEBI has said.

The broker does the validation of the risk parameters.

DMA is expected to offer clients direct control over their orders, faster execution, reduced risk of errors associated with manual orders and better audit trails. According to some analysts, it can also reduce the possibility of “front running” by employees of brokerages and assure clients better confidentiality.

The technology for this DMA facility has been developed and provided by Geojit Technologies Ltd, a wholly owned subsidiary of Geojit Financial.

This proprietary technology has been tested and audited by NSE, said Mr C.J. George, Managing Director, Geojit.

BNP Paribas has a joint venture with Geojit in the institutional broking business.

The joint venture , BNP Paribas Securities India already has in place the research facilities, trading and dealing desks, said Mr George.

“Despite the tough market conditions, we are committed to continue investing in our securities business in India and the rest of Asia,” said Mr Pierre Rousseau, CEO, BNP Paribas Securities Asia.

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