Skip to content
Subscriber Only

HSBC, BNP Repeatedly Breached Trading Limits in Market Chaos

  • Big banks’ value-at-risk models struggled to predict moves
  • Covid-19 panic, precious metals volatility whipsawed HSBC
Bloomberg business news
HSBC, BNP Repeatedly Breached Trading Limits in Volatile Markets
Updated on

HSBC Holdings Plc and BNP Paribas SA‘s risk limits were repeatedly breached in March after unprecedented market volatility blew out estimates on how much they could lose or gain on their trading desks.

Europe’s two biggest banks exceeded their value-at-risk limits -- a measure of risk used to calculate how much capital they need to hold against potential losses -- more times in March than over several years during calmer times, according to first-quarter filings.