BNP Paribas Handled Nearly Half of Record $4.2 Billion MSCI Rebalancing Trades in India
· Business · Bloomberg, Economic Times
BNP Paribas SA executed nearly half of the record $4.2 billion in stock trades tied to MSCI Inc.'s latest index rebalancing through India's new closing-auction system, according to people familiar with the matter. The trades flowed through a 45-minute closing session introduced by the National Stock Exchange and BSE in 2024 to reduce price volatility and absorb large index-driven orders. BNP Paribas's dominant share underscores how a handful of global brokers are absorbing the bulk of the order flow during these rebalancing events. The specific breakdown of other brokers' market share and the exact dollar value routed through BNP Paribas were not disclosed. The MSCI quarterly review is one of the largest scheduled inflows of foreign passive money into Indian equities.
Why it matters
Index rebalancing trades of this size directly affect intraday liquidity and price discovery in Indian large-caps, and concentration among one or two brokers raises questions about execution competition and brokerage fees for foreign funds tracking MSCI India.
Read the original report — Bloomberg
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