BNP Paribas is making sweeping changes to its global markets division as it seeks to build on its growth in recent years and establish itself as the top European bank in sales and trading.
The French lender is simplifying its markets unit into three business lines across global equities, global macro and global credit from March 1, according to an internal memo from head of global markets Olivier Osty that IFR has obtained.
Nicolas Marque, who was previously in charge of equity derivatives, will head up BNPP’s new-look global equities business, which has grown significantly over the past year following the integration of Deutsche Bank’s prime services division and the acquisition of cash equities specialist Exane.
“We now have the responsibility to monetise these investments and become the undisputed European leader in this space,” Osty said in the memo.
Francisco Oliveira and Arne Groes will co-head the global macro and global credit businesses. Oliveira’s primary focus will be on global macro, which covers currencies, rates, local markets and commodity derivatives. Groes, a credit veteran, will mainly focus on that business, which encompasses primary markets, secondary credit trading as well as asset financing and securitisation.
Osty referred to these businesses as the three “growth engines we will need to reach our ambition”. He also emphasised the importance of technology to the bank’s strategy for the years ahead and said Raphael Masgnaux will become head of global technology platforms for the markets division.
Sustainability was the other key area of focus, with Osty announcing the creation of a global markets sustainability board that he will co-chair alongside Constance Chalchat, who was appointed chief sustainability officer for global markets last year.
“The next three years will see surging client demand and regulatory change related to ESG, which is an essential part of our strategy,” Osty said.
Osty announced a number of other appointments that will become effective from July 1: John Gallo will become head of global markets Americas in addition to his sales management responsibilities; Joe Bonnaud will become Gallo’s deputy; Hubert de Lambilly will move to Paris to become head of Continental Europe, the Middle East and Africa; and Arnaud de Tregomain will become COO and head of business development, among other moves.
Osty also flagged further “organisational details” to be announced in the coming weeks, noting "we do have bold ambitions that require adaptation".
BNPP reported global markets revenues of €6.8bn on Tuesday, flat compared with the previous year, but a 22% increase from 2019.