Derivatives Operations to Trading - Seeking clarification

Hi All,

I am new to WSO and thought I would seek clarification to the doubt that has been clinging on to my mind for some time now. I would be joining a BB (GS/MS) in their Derivatives Operations. My job description reads - "Ensuring all the trade economics, pay-off profiles (complex maths formulas) and pricing factors are correctly captured in the product valuation. Identifying material risks with respect to modelling and booking methodology deficiencies as well as discrepancies with the trade documentation. Proposing booking, model and documentation amendments and co-ordinating the implementation of enhancements. "

The preferred set of qualification for this role is - "Mathematical / Financial Engineering / Engineering degree".

The Doubt - I realize that its not a FO job. But given the fact that this role would help me strengthen my product knowledge across all asset class and give an idea of the risk boking systems that the banks use, would it be possible for me to jump to trading after few years?

I see some people had mentioned in their previous post that they are aware of few traders who started off in Derivative Operations. Also, I would want to know how easy/difficult would this transition be? I understand networking helps. But I guess it cannot help to an extent that you get jobs in FO. Any thoughts?

Thanks,
Modest

 

isn't GS ops in Utah, and wouldn't that hinder his ability to network and move into FO?

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Best Response

Modest.. I too will be starting at a top BB in Derivative Ops, and will be busting my ass to make the switch after a year or two.. Best of luck..

From the advice I have gotten on this forum: definitely possible, be the top Analyst in Deriv Ops.. don't forget to do well in current job while you are looking ahead to trading.. network like crazy with the traders, not about models and bottles but rather about ideas/processes/intelligent questions

Do well, and at performance review time in a year or so, make some noise about moving

Good luck

"Major in economics; use your economics degree to get an analyst job on Wall Street; use your analyst job to get into Harvard or Stanford Business School; and worry about the rest of your life later"
 

Aside from networking, the most important thing is to step outside of your job description and go out of your way to try to make processes better/quicker/more efficient. Go up to your boss and be like "hey I realize XYZ is done really poorly and takes so long. I figured that we could do it this new way. I'd like to lead the project on this if possible. Doing this will also help you network better, as you'll likely be working with traders to help implement new things.

 

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