Structured Products Awards for Excellence 2015 – BNP Paribas

WINNER OF
Best Provider of
Equity-linked Non-flow Structured Products

Stephane Honig
Head of Sales Wealth Management & Family Offices Global Markets APAC, BNP Paribas

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BNP Paribas’ ability to customise and tailor-make a wide range of products has ensured an overwhelming victory in this category, for the first time.Though the size of non-flow structured products assets under management at private banks remain small compared to flow structured products, the former has given banks the opportunity to differentiate themselves through unique pricing and designing capabilities. BNP Paribas has stood out from the rest for, among other things, its ability to seize an opportunity in the equity markets that is usually available only to institutional investors, and repackage it for private banking distribution.

“We made dividends as a key focus – the bread and butter for our institutional clients – adjusted and customised it for our private banking clients. As a result, demand for the product was high since its launch this June,” says Stephane Honig, head of sales, wealth management and family offices, Asia Pacific.

He explained that by taking a classic structured product and enhancing the dividend exposure of the product, clients, particularly those invested in the European equity markets, were able to benefit.

“Clients were exposed to the upside of equity with partial downside protection, giving them on top of it 2.5 times the dividends of the stock,” added Etienne Grisey, head of equity derivatives structuring, APAC global markets at BNP Paribas.

In addition, Grisey said BNP Paribas also capitalised on the exchange-traded funds (ETFs) boom across Asia, particularly during the downturn in global markets.

“An opportunity was rolled out on ETFs in Hong Kong. Many investors were interested in shorting ETFs during the market correction which has led to high borrowing rates. BNP Paribas used these market conditions to launch a one month delta 1 product on these ETFs, enhanced by a 20% per annum coupon,” he said.

Indeed, Hong Kong’s ETF AUMs and product range both grew approximately 50% in 2015. Demand was driven primarily by China-related products, although the allure has undoubtedly worn off compared to earlier in the year.

With its wide and comprehensive breadth of bespoke products, coupled with the use of its inhouse single-dealer platform, Smart Derivatives, BNP Paribas is the deserved winner of this year’s Best Provider of Equity-linked Non-flow Structured Products award.

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WINNER OF
Best Provider of
Exotic Currency-linked Structured Products

Stephane Honig
Head of Sales Wealth Management & Family Offices Global Markets APAC, BNP Paribas

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In a year marked by fluctuation and volatility, particularly in the currency markets, BNP Paribas has nonetheless forged new ideas and carved out opportunities created by the appreciation of the greenback.By adapting to the global sell-off in August, BNP Paribas was able to help its clients by capitalising on the strong Australian dollar.

“In the second half of the year, we distributed structured products that helped private banking clients manage the currency fluctuations, such as using the Australian dollar as the underlier,” said Simon Lau, head of IRFX and Commodity Structuring, Asia ex-Japan, Global Markets. While the RMB devaluation in August did catch many private banking clients off guard, BNP Paribas was able to move swiftly to offer an alternative.

In addition, the bank was also in a position to offer clients currency-linked structured products that alleviated the impact of the US dollar bull run in the second half of the year.

“Clients were interested in high yield through products such as accumulators but suffered in the second half due to USD bullish run. We launched rescuer notes which provided clients the ability to convert at least half their positions to US dollar at its original entry point,” Lau noted.

Currency continues to be a key strategy moving forward, he added. With the impending US rate hike, Asia’s private banking clients will be looking to reposition. Evidently, BNP Paribas’ ability to deliver solutions consisting of product innovation and competitive pricing is set to stand it in good stead. For all these, it is this year’s winner of our Best Provider of Exotic Currency-linked Structured Products award.

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About BNP Paribas

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WINNER OF
Best Single-Dealer Platform Provider
for Structured Products

Stephane Honig
Head of Sales Wealth Management & Family Offices Global Markets APAC, BNP Paribas

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Despite private banks in Asia currently facing an onslaught of technology product providers willing to offer choice and price discovery across multiple issuers for structured products, when it comes to customised, exotic and bespoke structured products, the value of single dealer platforms have withstood the test of time.Launched in Asia at the end of 2013, BNP Paribas’ platform offers private banks access to a selection of exotic, complex structured products, the ability to design, price and trade tailored flow products and manage trade portfolios. Indeed, Smart Derivatives has captured a significant share of the market with over 450 clients onboarded in over 30 countries. Its one-stop-shop online platform has led the market in its innovation and intelligence, offering clients direct access to BNP Paribas’ latest opportunities and flagship offerings.

A key factor in its development has been the interactive tool for primary and secondary trading. On primary trading, the tool has allowed users to design, price and trade fully tailor-made structured products with a number of combinations. On secondary trading, the single interface gives client access to all post-trade information and real time value of the bank’s existing products. Product details, valuations and documentation are provided at users’ fingertips.

To date, Smart Derivatives has more than 3,000 underliers with structures on a number of currencies and as at end-2014, the platform was deployed by more than 60 clients in Asia, showcasing both its dominant position and a growing interest for automated solutions.

While disruption continues to sweep through the structured product distribution platform space, Smart Derivatives has managed to stay above the curve through its ability to seamlessly integrate into back-end systems while innovating on its trade cycles. It is this year’s Best Single-Dealer Platform Provider for Structured Products.

Recent Stories from Asian Private Banker featuring BNP Paribas

BNP Paribas Products Suite

  1. Latest Investment Ideas
  2. BNP Paribas Cortex

About BNP Paribas

LinkedIn: Click here
BNP Paribas APAC Website: Click here to get the latest news about BNP Paribas