BNP Paribas has again opted to team up with other banks to co-market their credit derivative index products in a sign of increasing co-operation between banks in this highly competitive area.

BNP is to become a joint lead manager and joint bookrunner of JP Morgan and Morgan Stanley's soon-to-be-launched Trac-X Europe notes, and a market maker of Trac-X Europe Swaps. The French bank had first entered into a joint venture with JP Morgan in October, when it agreed to provide pricing on the latter's European credit derivatives index, Jeci, and market a second series of Jeci-based index-linked notes.