Purpose of the job
The Derivatives trader is, along with other members of the derivatives team, responsible for the local hub derivatives trading by identifying and executing trades, helping our physical traders in taking positions and developing new OTC style business with our clients and suppliers in the dairy supply chain. In addition, he or she generates new trading ideas for our global proprietary trading book and is keen to utilize data and other information to create both spread and options based strategies. The derivatives trader must have a solid understanding of the risk associated with their activity & the exposures taken on.
Derivatives Trading
- Responsibility for part of the local (dairy) derivatives book for Interfood, including but not limited to options, swaps and other financial products used to manage speculative, hedging, arbitrage strategies and positions.
- Contribute to the proprietary spread trading P&L, by initiating new arbitrage trades or deploy other financial trading strategies.
- Have daily contact with brokers and market stakeholders to execute financial trades (futures, options, forwards).
- Find ways to further optimize (or increase) the stakeholders (e.g. brokers) Interfood is conducting its Derivatives business with.
- Maintain a strong link with the commercial traders and position holders and support them in managing (physical) price risk and positions.
- Use data and correlations to setup algorithmic trading models and implement advanced option strategies.
- Contribute to strategic derivative business plans, setup conferences and engage in other initiatives to reach our long-term ambitions.
Customer Engagement
- Collaborate with the physical traders to identify opportunities and deliver value added solutions to mitigate dairy price exposure for our clients and suppliers.
- Grow into the role of conducting regular on-site meetings with prospects and clients by recommending risk management strategies.
- Develop OTC deal-type structures that provide tailor made hedging solutions for our clients on top of existing physical deal flow.
- Create presentations and marketing material that explain the value of mismanagement solutions to potential clients and suppliers.
- Regularly track and report on the progress made with new client engagements (CTRM).
Risk Management, Data and Tooling
- Understand the role of risk and always operate within pre-agreed boundaries (VaR, Position limits, Option limits etc).
- Work with the local financial teams to mitigate FX risk or assess the credit risk on your counterparties.
- Remain current on financial market regulation, position limits and other developments to ensure our trades comply with the set regulation on exchanges.
- Share your derivatives and financial market knowledge with the local traders to create new opportunities for business.
- Be open to learn new data or programming languages (Python, R, ADL) to improve your own skillset and generate new trading ideas.
- Participate in improvement projects or local initiatives to create more insight into product positions, basis-risk, market risk, option tooling, among others.
Education and experiences
- Bachelor's or equivalent with emphasis in (business) management, finance or economics
- 3-5 years minimum experience (Derivatives, FX, Trading, OTC, financial markets)
- Proven track record in physical trading or financial markets industry
- Experience with execution on electronic trading platforms
- Excellent command of English, a second language is preferred
- Interest in working with data, developing algorithms, & structured products
Competencies
- A high level of conceptual and strategic thinking, with strong negotiation skills
- Self-reflective and motivated to continuously develop
- Drive and desire to win
- The inclination to seek and analyze data from a variety of sources to support decisions and to align others with the overall strategy
- Naturally connects and builds strong relationships with others, demonstrating strong emotional intelligence and an ability to communicate clearly
- Interest in working with and having an awareness and understanding of different cultures, personalities and working styles