BNP Paribas adds to energy derivatives team

BNP Paribas has hired two energy derivatives traders from JP Morgan Chase. Larry Felske joins BNP’s commodity-indexed transactions group as a director of natural gas options trading in New York, and Olivier Knight joins BNP’s London desk as an oil products derivatives trader.

They will report to Jean-Marc Bonnefous, global head of commodity-indexed transactions at BNP in New York.

Felske was previously head of the New York desk for natural gas trading at JP Morgan, according to BNP Paribas. Before this he worked as a bank examiner at the Federal Reserve Bank of New York, and at Bankers Trust as an assistant vice-president of its New York derivatives audit.

Knight, who was head of JP Morgan’s London-based oil derivatives desk, according to BNP Paribas, previously worked in a variety of derivatives trading positions at Credit Agricole Indosuez in Paris.

But a JP Morgan spokesperson said Felske and Knight were mid-ranking energy traders at the US firm and did not run any trading desks.

BNP’s commodity-indexed transactions group was established in 1989 and employs 30 energy derivatives traders.

“These two strategic hires reflect the commitment of BNP Paribas to the energy and commodity markets, and will further increase the bank's established presence in the energy risk management market-place,” Bonnefous said. “With Enron’s demise and energy deregulation in Europe, there is a great opportunity for banks to make the most of their client base to win energy trading business.”

BNP currently trades gas, crude oil and base metals, and Bonnefous said electricity trading plans are currently being considered.