LONDON, Sept 30 (IFR) - BNP Paribas has reorganised its
equity derivatives business to more closely align its operations
around client types and made a series of hires as other banks
The new institutional sales division is headed by Emmanuel
Dray, who is promoted from his role as global head of flow
In his new role, Dray will focus on the full range of
institutional clients, including hedge funds, pension funds,
insurers, asset managers and sovereign wealth funds. He also
retains his responsibilities for linear trading across delta one
products, futures and forwards, encompassing ETF market-making,
risk premia and thematic baskets.
"We wanted to realign our focus more on the client and less
on the product," Dray told IFR. "We want to be agnostic to the
kind of product that we sell to our clients - a pension fund may
want to invest in a systematic strategy, or it may opt for a
flow product such as a variance swap or a dividend swap."
The new structure reflects the growing need for
institutional investors to consider a broader range of products
to meet their investment needs against a backdrop of low and
negative interest rates and weak equity conviction.
"Despite the massive firepower of central banks, there's
little consensus over where equity markets can go and should
go," said Dray.
With US equity benchmarks including the S&P 500 and Nasdaq
trading around their all-time highs, investors have become
increasingly uncertain over further future direction,
particularly when that bullish performance has come alongside
six consecutive quarters of contracting earnings. According to
Dray, many institutions are not yet prepared to make the leap to
single stocks, having seen blue-chip names such as Volkswagen
and Deutsche Bank come under heavy pressure on negative news
"We're missing the directional, macro flows that drove
markets in recent years, but investors are still scared of
single names given the rise in idiosyncratic risk. There's a lot
more interest in sector-wide and thematic investing," said Dray.
As part of the reorganisation, the French dealer has made a
series of new hires as it continues to expand the business while
many of its competitors scale back.
Diego Caielli joined earlier this month in a senior sales
role covering North American pension funds and hedge funds. He
joined from Credit Suisse and previously held roles at Goldman
Sachs and JP Morgan covering volatility and macro accounts.
The bank has also hired Navir Brar as head of UK
institutional sales, covering pension funds, insurers and asset
managers. He joins from JP Morgan and will be involved in
developing the French dealer's flow and delta one activities.
The bank has added two European index exotics traders, Rim
Zidani and Reda Benali. Zidani joins from Deutsche Bank and
Benali was previously at Citibank.
(Reporting by Helen Bartholomew)