These awards demonstrate the strength and resilience of BNP Paribas’ FX franchise and how it was able to stay closely connected to clients throughout the crisis.
Despite the uncertainty wrought by the Covid-19 pandemic, FX Markets cited BNP Paribas’ history of sensible decisions allowing the bank to thrive among the chaos. Standout initiatives included the bank’s interactive algo trading assistant Alix, which allows users to speak and receive commentary in real time from home.
“The machine is using huge datasets to come up with conclusive answers because it not only looks at just one or two markets, but at the entire FX ecosystem,” commented Asif Razaq, Global Head of FX Algo Execution at BNP Paribas. “All in under a second.”
FX Markets also noted BNP Paribas’ expertise in environmental, social and governance (ESG) within its operations and the recent closing, in 2020, of the first FX hedge linked to ESG-specific key performance indicators (KPIs).
“The way we see this market developing meaningfully is through close partnership with clients over the long term” says Xavier Gallant, BNP Paribas’ Co-Head of Interest Rates, FX and Local Markets Corporate Sales EMEA. “It’s essential to calibrate our solutions around each client’s ambitions, and define how we measure their success from the start, which also ensures the sustainable impact is clear and tangible. This is a bespoke approach – the market is by no means commoditised.”
Since this first deal, BNP Paribas has facilitated other ESG-linked FX forwards trades. The bank is now in discussions with clients on how this could be extended to other types of transactions or other frameworks.
Neehal Shah, Global Head of G10 FX Trading and EMEA Head of FX and Local Markets Institutional Sales added, “Our commodities business has been working very closely with the FX business since they’ve been helping clients conduct carbon offset trades for many years now. The structuring team is working closely together to come up with solutions.”
BNP Paribas’ investments into its FX franchise in recent years has equipped it well to not only weather the storm of 2020, but set the bank on a solid footing to increase its market share in FX markets.