BNP Paribas Commodity Derivatives offer a full range of price risk management solutions on underlyings including energy, base & precious metals and soft commodities.
BNP Paribas Commodity Derivatives is made up of two separate but coordinated teams:
The Commodity Indexed Transactions team (OTC Group) - a leading provider of price risk management solutions and commodity investment products. They provide client-driven market making activity, acting as a principal for transacting swaps and options with clients under bilateral agreements.
The Commodity Futures team - an intermediary for clients, providing execution, clearing and margin finance services for contracts traded on major European, American and Asian Commodity Exchanges.
Commodity Indexed Transactions (OTC Group)
A Client Driven Model:
BNP Paribas offer liquidity and market-making services across commodity markets for a large and diversified base of clients worldwide. Risk Management services are offered for producers of commodities, refiners, industrial consumers, transportation companies, hedge funds, banks and official institutions. In addition, we also provide exposure to commodities through diverse commodity strategies and structured solutions for professional clients.
Global Product Coverage
Trading books are managed globally with teams specialised by product and region. We provide a complete range of financial derivatives and access to certain physical underlyings is also available.
Wide Range of Instruments
A wide range of instruments are available, including plain vanilla swaps and options, composite hedging strategies (zero cost collars, target forwards, callables) and structured solutions. We are market leaders for large hedge programmes and structured hedge financing as well as outright and relative value strategies. The OTC group carries out client-driven market making activity.
BNP Paribas has a global network of experienced advisory professionals providing 24 hour market coverage, with teams located in New York and London. We have dedicated Direct Market Access (DMA) and Trade Support teams in the US and Europe. All major electronic platforms are supported.
We are proud of our position as one of the largest executors and clearers of commodity contracts, as members of the world’s largest commodity exchanges and clearing houses.
Margin Finance and Portfolio Clearing:
BNP Paribas Commodity Futures is a leading provider of margin finance: flexible facilities can be tailored to your company’s specific needs. We can also offer competitive solutions for portfolio clearing which incorporate all global spaces and currencies under a single facility.
Growth in the volume of futures and OTC-cleared products has been dramatic over recent years. The global credit crisis, continued political and regulatory focus and increasing client appetite to reduce counterparty credit risk has seen an increasing move to cleared products. BNP Paribas Commodity Futures is a market leader for both futures execution and clearing as well as OTC-cleared products and can provide access to these facilities.