Key takeaways
- Market volatility and BNP Paribas’ stability: 2025 has seen unprecedented challenges in financial markets, including geopolitical risks and policy shifts. BNP Paribas emerged as a steady partner and has been recognised at the GlobalCapital Derivatives Awards 2025 for its derivatives leadership.
- Key events in 2025: The US presidential election, ‘Liberation Day’ tariffs and escalating global tensions have caused global market volatility. Europe has gained investor attention amidst the market turbulence and increased defence spending from EU countries.
- Risk management with derivatives: In the face of unpredictable markets, BNP Paribas’ derivatives expertise has been crucial. The Bank’s award-winning platform has helped clients manage risk and respond to market stressors, with a strong focus on risk management and sustainable finance solutions.
A year of unprecedented challenges
The past year has been nothing short of a whirlwind for financial markets, marked by shock macro events that have brought challenges not witnessed for years. From renewed geopolitical risks to sudden policy shifts, and persistent macroeconomic divergences, market participants have had to navigate a landscape of constant uncertainty and adapt swiftly.
Through it all, BNP Paribas has emerged as a reliable banking partner to its corporate and institutions clients, providing strategic advice and helping them manage the unpredictable nature of financial markets in 2025.
2025: What has happened so far?
- U.S. presidential election: The late 2024 presidential campaign and subsequent inauguration of President Trump in January 2025 ushered in a wave of belief in ‘American exceptionalism,’ igniting a market rally. Investors responded enthusiastically to the incoming administration’s policy stances, such as commitment to deregulating financial markets, and pro-crypto policies.
- Liberation Day reaction: This trend began to unwind following the so-called Liberation Day, when President Trump’s sweeping global trade tariffs triggered huge volatility in global markets.
- Europe in the spotlight: The rapid change in US trade policy saw Europe enter the spotlight. Investors looked to European markets for diversification, bolstered by increased defence spending from countries like Germany, drawing global attention and investment to European markets.
- Escalating global tensions: Geopolitical risks have escalated dramatically which continued to put pressure on energy markets, and drive volatility as corporate and institutional investors scrambled to hedge their exposure to these markets.
While the US markets have regained their losses, the one certainty market participants can rely on in 2025 is…uncertainty. This creates a unique challenge for corporate and institutional investors as they navigate the shifting market backdrop.
Derivatives: An essential tool for risk management
In this environment, derivatives have become more useful than ever in navigating global financial markets. BNP Paribas, with its derivatives expertise, has been in prime position to respond to this dynamic.
What are derivatives?
Derivatives are financial instruments whose value is derived from the value of an underlying asset, such as a stock, bond, commodity, currency, or market index. Derivatives come in many different forms and can be highly customisable, each serving different purposes and offering unique advantages for managing financial risk, such as:
- Arbitrage: To exploit price differences in different markets
- Hedging: To protect against price fluctuations in the underlying asset
- Speculation: To profit from changes in the price of the underlying asset
BNP Paribas: A trusted partner through market turbulence
Despite the volatile markets, BNP Paribas has remained a steady and strategic partner to clients across the globe. Its ability to anticipate market shifts, provide deep liquidity and deliver tailored, cross-asset solutions has helped clients respond to market stressors.
From multinational corporates hedging against geopolitical-driven FX risk, to institutional investors reassessing their exposure to different markets and adjusting portfolios, BNP Paribas has worked closely with its clients to build strategies that are both defensive and opportunistic.
The bank’s continued investment in digital infrastructure, analytics, and trading technology has also enabled faster, more informed decision making – giving its clients an edge when speed and precision matter most.
BNP Paribas: Award-winning derivatives expertise
GlobalCapital has recognised BNP Paribas’ ability to support clients in the derivatives markets, awarding the bank in several categories at its annual derivatives awards:
- Derivatives House of the Year: Europe & Asia
- Derivatives Risk Solutions House of the Year: Europe and Asia
- Thought Leader in ESG: Global
The awards are testament to the strength and breadth of BNP Paribas’ global derivatives platform and underscore the significant strides made by the bank to service its clients.
Managing risk with derivatives solutions
The macroeconomic and markets environment has rarely been as unpredictable as it is today. Understanding the market drivers and how to manage risk has become crucial for corporates as they conduct business in 2025. Over the past year, BNP Paribas has taken every opportunity to demonstrate its risk solutions capabilities, providing insight and actionable risk management responses for its large and medium-sized corporate clients.
For example, in February 2025, BNP Paribas launched its 3rd annual Corporate Risk Management Outlook which aims to provide corporate leaders with insights to shape their financial risk management strategies and help them make more informed decisions to mitigate potential threats. It dives into the key drivers of uncertainty and the potential implications for corporates to help them navigate the complex risk landscape, strengthen financial resilience, and drive business growth in a rapidly changing world.
“Winning the Derivatives Risk Solutions House award underscores our strong focus on risk management,” comments Fabrice Famery, Global Head of Corporates Sales, Global Markets at BNP Paribas. “This has allowed us to strengthen relationships with our corporate clients at a critical time, helping them navigate the volatility and heightened risk environment.”
Sustainability remains in-focus
Although market volatility and macroeconomic shifts have dominated the headlines this year, sustainability continues to be a focus for corporate and institutional clients. As a leading bank for sustainable finance, BNP Paribas has continued to work with its clients to develop sustainable finance solutions for its clients, building on its extensive derivatives and environmental, social, and governance (ESG) expertise.
One notable area of growth has been sustainability-linked derivatives. These financial instruments tie the payout or other terms of the derivative contract to the achievement of specific sustainability or ESG goals. BNP Paribas has worked with clients across the globe to structure and execute these products, helping companies to improve their sustainability performance by linking financial outcomes to measurable ESG targets.
This year, BNP Paribas also partnered with Dift to integrate philanthropy into financial products, enabling clients to support charitable projects and sustainable initiatives worldwide through a unique digital platform.
Another area that has come more into focus this year is blue finance, which looks to tackle the management of marine protected areas. BNP Paribas has stepped up its efforts this year to support clients in this field and attended the recent United Nations Ocean Conference (UNOC) in Nice – convened to accelerate solutions that can scale financing for ocean protection.
In October 2024, BNP Paribas CIB assisted the leading industrial water management company, Sauer, in issuing the first blue bonds in the water sector, and has continued to support several institutional clients this year with blue labelled structures on a global scale.
In addition, BNP Paribas Global Markets also successfully traded a notable operation with BNP Paribas Banque Privée in France: the first-ever structured product campaign featuring a blue bond wrapper. This initiative is part of the bank’s broader support to the blue economy, particularly in the development of innovative financial instruments that can attract the capital needed to meet the challenges of marine conservation, protection, and restoration, as well as well as support to local communities.
As Constance Chalchat, Chief Sustainability Officer, Global Markets at BNP Paribas, comments, “Our work in sustainable finance and renewable energy solutions is a testament to our dedication to supporting our clients in achieving their sustainability goals while contributing to a more sustainable future for all.”
In a year defined by uncertainty, BNP Paribas has proven itself as a resilient and strategic banking partner, excelling in derivatives and sustainable finance solutions to help clients manage unprecedented market challenges.
What are the GlobalCapital Derivatives Awards 2025?
The Derivatives Awards honor top banks, brokers, service providers, law firms, exchanges and other key participants for their contributions to the derivatives market, celebrating outstanding achievements worldwide. Learn more here.