BNP Paribas Prop Desk Shut down Prompts Senior Trader Exodus

BNP Paribas has just announced the shut down of its emerging markets proprietary trading desk in London, leading to the key departures of senior traders Jean-Luc Alexandre and Philippe Fourcade.

This is the second shut down of a prominent London-based proprietary trading desk, as Societe Generale took a similar route at the end of last month. BNP Paribas cited staunch regulations that had been stymying the development of its operations, which included the passage of Dodd-Frank in the US.

This act has mitigated the risk that banks can assume, thus creating a negative feedback loop with Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term and risk. As a result, both Jean-Luc Alexandre and Philippe Fourcade are now listed as inactive on the UK’s Financial Conduct Authority (FCA) Financial Conduct Authority (FCA) The Financial Conduct Authority (FCA) is the largest financial regulator for all financial markets in the United Kingdom (UK).The UK regulator is responsible for the conduct of firms authorized under the Financial Services and Markets Act 2000. Moreover, the FCA is also responsible for the regulation of behavior in retail and wholesale financial markets, supervision of the trading infrastructure that supports those markets, and the prudential regulation of firms not regulated by the PRA. Its rol The Financial Conduct Authority (FCA) is the largest financial regulator for all financial markets in the United Kingdom (UK).The UK regulator is responsible for the conduct of firms authorized under the Financial Services and Markets Act 2000. Moreover, the FCA is also responsible for the regulation of behavior in retail and wholesale financial markets, supervision of the trading infrastructure that supports those markets, and the prudential regulation of firms not regulated by the PRA. Its rol Read this Term) official register of industry staff.

It is unknown what lies next for both senior traders, however it bears watching if this develops into a broader trend in the industry in light of tighter regulations and waning revenues.