LA Grande Boum In Paris Trading Rooms; French Banks Buy Workstation Solutions

Last year the Paris operations of three European banks issued tenders for new trading room systems. The three banks -- Banque Indosuez, Banque de Neuflize, Schlumberger, Mallett, and Credit Lyonnais -- all wanted the best for their traders, and all selected different solutions.

Trading rooms in Paris are not what they are in New York. In Paris, a trading room of 100 positions is considered large. Until very recently, the trading functions of Paris banks were handled by small semi-autonomous groups divided by market and scattered throughout the bank. Today, many Paris banks are unifying their trading activities under a single information architecture.

European banks regard their trading rooms as marketing tools as well as strategic weapons. Top management is more concerned with showcasing trading technology for clients than hiding it from competitors.

France is busily deregulating its financial markets, and banks have recently been allowed to buy into the lucrative stockbroking cartel of the Paris Bourse. The French Treasury has taken its show on the road, promoting French bonds to institutional investors overseas.

The opportunity to participate in new markets, expectations of higher volume, and stiffer competition are leading major Paris banking operations to gird their loins with the latest workstation technology.

French banks share the trading world's preoccupation with "totally digital" solutions. But only two digital information feeds are widely available in Paris today: Reuter RDCDF and Telerate TDPF. So while Paris' trading rooms are laying the foundation for fully digital solutions, they must continue to accommodate video sources.