Hedge Funds, Corporates and Complex Transaction CCR Advisor

The Americas Hedge Funds, Corporates and Complex Transaction Client Risk Team (RSR/CCR/FCC) “FCC” acts as the 1st Line of Defense risk team for Counterparty Credit Risk “CCR” in relation to Hedge Funds, Proprietary Trading Groups, Family Offices, Mutual Funds, and other clients trading Complex Transactions (e.g. Exotic Trades, Alternative Risk Transfer, etc.).

The Risk Advisor covers:

• Agency Scope: Prime Services & Clearing (PSC) activities within the Equity Derivatives (EQD) Business Line in Global Markets (MARK)

• Principal Scope: Bilateral Trading Activities where any MARK Trading Desk is a Principal of the activity. It includes Equity Derivatives (EQD), Fixed Income and Currencies (FIC) and Distribution and Credit Solutions (DCS).

The team is primarily responsible for the following areas:

• Portfolio Analysis

• Limit Recommendations

• Client Margining

• Risk Monitoring

• Limit Overshoot Management

• Ensure that the risk limits remain in line with:

  • SG Risk Appetite
  • Changes in Clients risk profile
  • Scarce Resource targets (Profitability, RWA, Balance Sheet, LRE, NSFR, Cash, LCR)

Day To Day Responsibilities:

Portfolio Analysis, Front Office and Client Interaction:

• Supports Sales on client pitching by providing risk information with the necessary explanation on how SG define risk and how measures are applied to client portfolios.

• Assists in due diligence meetings for prospective and existing clients and assists RISQ if requested.

• Performs and provides analyses on:

  • Client strategies and trading patterns
  • Risks in client portfolios: market risk (systemic, idiosyncratic or dislocation/basis risks), liquidity and concentration risks, wrong way risk, etc.
  • Margin coverage relevance
  • Margin period of risk relevance
  • Scarce resource usage if required.

• Ensures relevance of Risk framework by engaging in on-going discussions with clients regarding their activity.

• Identifies emerging risks (market events, client-related early warnings) and escalates to MARK senior management and RISQ.

• Participates in implementing specific post-conditions (for example if a framework/a limit is approved with post-conditions) and/or exceptions if needed. Ensure such post-conditions and/or exceptions are monitored, annually reviewed and renewed.

• Ensure clients exposures are in line with global frameworks (e.g., financing envelopes for specific assets, CCP limits, etc.)

• Ensure Front Office is trained on the CCR Framework.

Risk Limits:

• Proposes new limits and / or renewals on upcoming expired limits to MARK senior management and and RISQ for validation.

• Participates in Account Closure and Renewal Processes (Limits and Sponsored Direct Market Access “SDMA” connections).

• Reviews and provides recommendation for Complex Transactions (e.g., Alternative Risk Transfers, etc.)

Monitoring / Reporting & Overshoot Management:

• Ensures first level monitoring on EOD risk and agency specific limits.

• Comments overshoots and prepares remediation plans in concert with Front Office for FCC clients.