Description of the Business Line or Department
The Global Markets functions is a trusted partner to external clients (Corporates, Financial institutions and Asset Managers) in market activities, offering a cross-expertise in Research, Investment and Risk Solutions, Execution and Prime Services.
Societe Generale International Limited (SGIL) and Societe Generale SA (SGPM) are Societe Generale’s primary booking hubs for listed execution, clearing and financing activities (Agency perimeter) within Societe Generale Global Markets. SGIL is a fully owned subsidiary of Societe Generale SA.
SGIL the Agency perimeter within SGPM primarily support the Prime Services (MARK/EQD/PSC) businesses, centralizing the booking of the following activities:
• Commodities Agency: Agency execution, clearing and margin financing for listed commodities (global hub)
This platform also supports Prime Services (Agency) as well as selected activities for the Equities & Derivatives (MARK/EQD) and Fixed Income & Currencies (MARK/FIC)
• Prime Services (Agency: Clearing and margin financing for listed and OTC derivatives (global hub), OTC non-cleared activity of Prime Brokerage clients, Listed FX facilitation, Agency execution for Equity derivatives and listed equity agency execution, Clearing collateral management (regional hub)
• Equity & Derivatives: UK originated cross-asset financing
• Fixed Income & Currencies: UK originated Fixed Income execution
As part of these activities, SGIL holds the general clearing memberships of European CCPs and holds client accounts for both CASS segregated and non-CASS segregated clients
Summary of the key purposes of the role
- Assessing the risk for prospective clients and proposing appropriate margining methodologies
- Monitoring the risk of live clients both on intraday activity and overnight exposures
- Undertake risk analysis to identify portfolio risk and firm’s risk
- Contributing to the development and risking of new product offerings
- Working on ad-hoc risk projects
The product scope encompasses Listed F&O, OTC derivatives on commodities and FX, and to a lesser degree will touch upon fixed income securities, equities, security financing and cash management products, plus any additional products or services that SG Prime may offer.
Summary of responsibilities
Client Monitoring Responsibilities (Internal and External Clients including market participants)
- Daily assessment of portfolio risk across a substantial client base and across a wide range of commodity products as well as other asset classes
- Client Portfolio Analysis – calculate and present risk analysis for select prospect clients and existing clients. Prospective and existing clients are typically corporate clients hedging their exposure to physical commodities. Provide analyses of each client’s strategy, portfolio, trading patterns
- There can be exposure other client types, including banks and hedge funds trading a variety of strategies such as global macro, long/short, relative value and arbitrage.
- Ensure relevance of Risk framework by engaging in on-going discussions with clients regarding their activity
- Discuss with the prospective client a proposed risk assessment approach and method. Provide support and expertise to the Business Development Executive, Credit and Compliance departments. Assist due diligence where necessary
- Provide a market risk opinion of new and existing clients, based on pre-agreed acceptance criteria with regional and global heads of risk. Propose collateral conditions or requirements based on sample portfolios, trading style, client typology in line with our risk appetite. Propose credit risk limit set up for new and existing clients to the credit risk department
Risk Management Responsibilities
- Monitoring of the market environment and reporting on the impact of market events on customers’ accounts
- Monitor the variation risk (replacement risk), deposit risk and financing amounts for counterparty exposures. Escalation to management on exposures as appropriate
- Compare the above exposures to approved limits, analyze overruns and proposes suitable actions
- Oversight of first level monitoring on official limits (Net CVaR, Gross CVaR, complimentary limits, Debtor and Delivery risk, as applicable)
- Monitor Intraday Risk and report breaches
- Review metrics other than official limits set by RISQ (ex. IML, financing, etc.); centralizes requests for explanation regarding breaches of end of day limits. Ensure resolution or escalation
- Develop enhanced internal and external reporting, focusing on adding value to the client and providing management with relevant risk information Aid and test the development of new reporting
- Coordination with FO, BO, IT and Operational Risk teams to understand front to back processes and ensure that all positions are known, that risks are captured and measured
- Liaise with OPER to monitor delayed payment of margin calls and escalates if appropriate. Acts as expert regarding margin computations (at the request of clients, RISQ, Prime Services management or other entities)
Product Scope Responsibilities
- Evaluate and approve requests for counterparty pre-trade order routing limits for E-trading
- Participate in the new activity procedure by formulizing a market risk opinion for new products and activities.
- Participate in testing new products.
- Ensure proper procedures and controls are established and documented for the risk monitoring of new product
- Propose suitable limits for in house business and facilitation upon request. Support request with qualitative and quantitative analysis.
- Develop specialised risk reporting and monitoring capabilities in our key risk tools
Knowledge Management Responsibilities
- Maintain up to date intelligence on market initiatives and client demands
- Maintain up to date knowledge on risk systems and policies
- Maintain up to date knowledge on product development and client offerings
- Responsibility to adhere to internal Policies that relate to you, your business or other businesses for which you have any level of responsibility. It is your responsibility to ensure compliance with operational and conduct risk requirements (e.g data leakage, security policies and regulatory requirements).
- Adhere to individual and where applicable department conduct rules in accordance with the FCA and PRA Code of Conduct rules
- Responsibility for managing, controlling, preparing and escalating risk within the scope of your position and in line with existing policies.
- Responsibility to ensure that you take reasonable steps to be fully aware of, understand and comply with all regulatory requirements from all regulatory and statutory bodies, trading venues, etc that are applicable to your role and business line.
- To assist in the self identification of all conduct related issues. Ensure escalation to appropriate stakeholder or function whether internal or external.
- Adhere to business line mandates relevant to the role as directed by your manager
- This description is intended to outline the main responsibilities for the role and is not an exhaustive list, responsibilities may vary from time to time as directed by your manager.