Amidst one of the most turbulent market environments in recent memory, BNP Paribas has proved itself a steadfast and robust partner to clients, receiving a record number of accolades at the Risk Awards 2023 for standing by clients no matter the circumstance.
- Derivatives House of the Year
- Currency Derivatives House of the Year
- Risk Solutions House of the Year
- Derivatives Client Clearer of the Year (for two consecutive years)
- Prime Broker of the Year
These awards highlight BNP Paribas’ unwavering commitment to its clients during market turmoil and demonstrate the strength and breadth of the bank’s derivatives franchise.
It’s an honour for us to win a record number of categories at the Risk Awards 2023.Olivier Osty, Head of BNP Paribas CIB Global Markets.
“It’s an honour for us to win a record number of categories at the Risk Awards 2023,” commented Olivier Osty, Head of Global Markets at BNP Paribas. “I’d like to personally thank our clients for their continued trust in us throughout an intensely challenging year and I am proud that we were able to stand by them as they navigated the unprecedented challenges of 2022.”
A year like no other
At the beginning of 2022, economies around the world were slowly recovering from the effects of the Covid-19 pandemic and markets seemed to be returning to some form of normality. However, the on-set of the Russia-Ukraine crisis in February sent shockwaves through the world as markets once again witnessed huge volatility and a shortage of liquidity. Europe was faced with a burgeoning humanitarian crisis and corporate and institutional clients across the globe were tasked with quickly managing exposure, adjusting positions and navigating the geopolitical risk. The turbulence continued well into the second half of the year with soaring inflation, a cost of living crisis and geopolitical tension adding further pressure to markets. As a result, 2022 was a year like no other as the bank’s clients navigated some of the most adverse conditions in recent memory.
In this context, market participants have relied heavily on their banking partners to react quickly to market moves, provide consistent liquidity, and employ their market expertise to advise them through every step. BNP Paribas has invested heavily in its derivatives business over the last few years to build a fully diversified and robust model, with the ambition of being the go-to European bank on the world stage. As a result of its efforts the bank was able to leverage its global strength, expert teams and deep balance sheet to support clients in all markets and asset classes globally.
“This year has been exceptionally tough for the economy and our clients,” commented Osty. “Having invested so much in our offering worldwide, building out our equities platform, and scaling our macro and credit businesses, we have been well placed to help clients respond to the market environment wherever they need us.”
A transformational journey
One standout achievement of the bank over the last few years has been the development of its equities platform. Building on BNP Paribas’ long-established, renowned Equity Derivatives division, BNP Paribas has created a brand new Global Equities house composed of the best-in-class elements on the market, creating strong synergies through its client-centric, multi-asset Prime Services division and its premier, award-winning Cash Equities platform through the acquisition of Exane.
After successfully migrating the Global Prime Brokerage & Electronic Equities business from Deutsche Bank at the end of 2021, BNP Paribas’ Prime Services had a transformational year in 2022 and continued to make tangible investments in people and the platform. As a long-term, credible partner, the bank delivered on its ambition by providing stability and consistency to its clients globally through market volatility.
BNP Paribas offers institutional and corporate clients access to one of the broadest product capabilities across prime brokerage, derivatives execution & clearing and FX prime brokerage. The FX Prime Brokerage business successfully and selectively onboarded key strategic client over the past 12 months, placing the bank as one of the top global FX prime brokerage providers.
Driven by targeted strategic investments, 2022 has proven to be a very strong year for the bank’s Derivatives Execution & Clearing business, reiterating itself as a market leading service provider. The business also retained its leading position as the fastest growing provider globally for five out of the last six years, growing significantly with strategic clients across the bank globally.
These efforts were well acknowledged by Risk, which awarded the bank its top award, Derivatives House of the Year, Prime Broker of the Year and Derivatives Client Clearer of the Year (two years in row).
Highs, lows and risk management
The Russia-Ukraine crisis set the tone for the FX markets in 2022. Currency trading saw a huge spike in activity following news of the Russian invasion. USD witnessed highs of the last two years as investors sought out the safe haven currency, while other currencies saw significant sell offs. Geopolitics added to the volatility with GBP seeing new lows in the second half of the year. Throughout the evolving situation and on-going turbulence, BNP Paribas’ FX trading business continued to provide clients with liquidity, flexibility and consistency while also deploying its long standing expertise to help capture opportunities from increased spreads.
The bank’s solutions business was also put to the test. Corporate clients were in greater need of bespoke solutions as geopolitical uncertainty rose to levels not seen for many years. As such, they turned to BNP Paribas for support in reducing their exposures to raw material prices, inflation, interest rates and foreign currencies – in particular in emerging markets. Liquidity management was also a key theme as volatility increased margin and collateral calls in some asset classes. Thanks to the bank’s integrated business model, BNP Paribas’ solutions teams were able to innovate and deliver for clients time and time again, across the bank’s full corporate franchise.
For these reasons, the bank was awarded Currency Derivatives House of the Year and Risk Solutions House of the Year.