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) is Societe Generale’s primary booking hub for listed execution, clearing and financing activities within Societe Generale Global Market and a fully owned subsidiary of Societe Generale.
SGIL primarily supports the Prime Services (MARK/EQD/PSC) businesses, centralizing the booking of the following activities:
- Prime Services: 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)
- Commodities Agency: Agency execution, clearing and margin financing for listed commodities (global hub)
The entity also supports selected activities for the Equities & Derivatives (MARK/EQD) and Fixed Income & Currencies (MARK/FIC)
- 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, 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 asset classes
- Client Portfolio Analysis – calculate and present risk analysis for select prospect clients and existing clients. Prospective and existing clients are typically off-shore hedge funds trading a variety of strategies such as global macro, long/short, relative value and arbitrage. Provide analyses of each client’s strategy, portfolio, trading patterns
- 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 required margins based on a sample portfolio, 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, Debtor and Delivery)
- 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. Ensures resolution or escalation
- Developing 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.
- Take responsibility for 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.
- Product testing – Imagine risk engine; testing is required for new instruments. This is an ongoing process and requires significant interaction with the Imagine team and SG IT development team
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.