BNP Paribas, as an actor in financial markets, is committed to respect the proper functioning of these markets both within and outside France, and to conduct its operations in compliance with the following regulations:
- the Monetary and Financial Code and the General Regulations of the Financial Markets Authority (RGAMF) in France
- the European Market in Financial Instruments Directive (MiFID), Transparency Directive and Market Abuse Directive
- the rules regarding the transparency of pre-and post-market operations
- the organisation of “Multilateral Trade Facilities” (MTFs)
- and the internalisation of orders, short sales and High Frequency Trading
Monitoring and Statements to the Markets
As an issuer, BNP Paribas is subject to market disclosure requirements (threshold crossing, etc.). To this end, BNP Paribas has a unit (control room) whose purpose is to consolidate the Group's positions, detect the crossing of participation thresholds and of declarations of intent associated with the holding of financial instruments, and to make the appropriate declarations as required.
Fight against Market Abuse
BNP Paribas has established a system for the prevention and detection of market abuse (insider trading, price manipulation) and conflicts of interest.
- Insider trading
Insider trading is the use or disclosure of inside information by a person who possesses such information to buy or sell financial securities, directly or indirectly, on his or her own behalf or on behalf of others.
- Price manipulation
Price manipulation is the use of deception or of fictitious transactions to buy or sell a security on a large scale with the aim of changing its value trend.
Prevention and Detection Framework
BNP Paribas has established “information barriers rules and systems” (Chinese walls), manages watch lists and prohibition lists as well as lists of information insiders, and has developed tools for detecting suspicious transactions:
- at the employee level: a procedure defines the role of an employee who discoverers the suspicious transaction, from the point of detection to the suspicious activities report up to the transmission of the information to the Head of Compliance
- at the central level, Group Compliance is responsible for reporting suspicious transactions to the Financial Markets Authority (AMF)