Derivatives: currently 163 jobs.The latest job was posted on 01 Oct 22.
A derivative is a security whose price depends on one or more underlying variables. The price of a derivative fluctuates according to those variables, essentially shifting the risk between parties. The most common types of derivatives include futures, options and swaps.
Derivatives are complex, and this complexity has in some quarters been party blamed for the financial crisis of 2008. In the light of this, the derivatives market is changing and becoming more transparent.
Types of Derivatives Jobs
Most derivatives professionals work in one of four key areas: sales, analysis, trading or back office.
Derivatives sales professionals bring in new clients and take care of their business transactions. Commodity derivative sales is a popular and prosperous example.
Derivatives analysts are responsible for analysing the effect of current events on the market and for forecasting.
Traders carry out the actual trading of derivatives, either on an exchange floor such as the Singapore Mercantile Exchange (SMX) or 'over the counter' (OTC), which means directly between the two parties concerned or via a dealer network as opposed to on an exchange.
Back office derivatives professionals range from IT staff to compliance officers and accountants.
Qualifications and Training
Most applicants for derivatives jobs have an MBA, but a good business degree is usually the minimum requirement. Once employed, you will receive training and will need to pass a test in order to obtain a license. In Singapore, where the commodities trading market is strictly regulated, a capital market license from MAS is required. However, no amount of training can really prepare you for the complexity of this field, so most learning is done on the job.
Who To Work For
Derivatives professionals are employed by major banks, regional banks, investment banks, brokers and futures commission merchants.