Derivatives: currently 200 jobs.The latest job was posted on 23 Feb 19.
Derivatives jobs encompass all manner of opportunities, from sales, analysis, structuring, credit, equity and trading in London and across the world.
Financial derivatives are effectively a contract between two parties concerning the value of the underlying commodity and how this value will be influenced over time and related factors.
These contracts can be considered as investment opportunities for many but are increasingly being used as insurance policies to hedge against the risk associated with trading.
The Origins of Derivatives
The first derivative contracts were created in the form of Futures Contracts where purchasers and vendors could insure themselves against spikes in the price of materials. For example farmers would enter into an agreement with a wheat buyer and settle on the price of the wheat at a pre-determined time in the future, protecting both the buyer and the seller from adverse fluctuations in price.
Since then, Swaps and Options have both become available. Swaps allow one product to be swapped for another at an agreed time, such as in terms of a currency swap. While Options provide the holder with the opportunity to buy or sell an agreed product at a set price, at a given point in time, if they so wish.
The Future of Derivative Jobs
Over recent years commodity derivatives sales have become more and more complex, which some say resulted in the financial crisis in 2008. This has led to a great deal of focus on the role of derivatives in the corporate banking industry and the way that they are structured and exchanged.
As a result, the government now wish to revolutionise the derivatives market and make the entire procedure far more transparent to the investor. And with such changes afoot, the demand for highly skilled individuals wishing to find derivatives jobs is considerable, and those with the appropriate expertise can reap very healthy rewards.