BNP Paribas SA (BNP), France’s largest bank, shut its emerging-markets proprietary trading desk in London, prompting the departure of two senior traders, according to three people with knowledge of the decision.
Jean-Luc Alexandre, who ran the desk, which invested money on behalf of the firm, left in July, according to the Financial Conduct Authority’s register. Philippe Fourcade, a trader on the desk, left last month, the register shows.
Banks are adapting trading businesses to an international accord calling for lenders to hold more capital and liquid assets and the Volcker Rule, the piece of the 2010 Dodd-Frank Act that limits the risks banks can take with their money.
“This is the last link in a chain of events since the Volcker rules came into effect,” said Jason Kennedy, chief executive officer of London-based recruitment firm Kennedy Group. “That’s led to the systematic shutting down of proprietary trading desks within the European banking community.”
Alexandre joined BNP in 2007, while Fourcade joined in 2006, according to the FCA register. They are both now listed as inactive on the register.
Alexandre declined to comment when reached on his mobile telephone in California. Fourcade couldn’t be reached through his work e-mail or via his LinkedIn account. A BNP spokesman declined to comment.