Quantitative Analyst

Job description

Role Title: Quantitative Analyst

Business: Finance
New or Existing Role? Replacement
Grade: GCB5

Role Purpose


Product Control Global Analytics is a global function with representation in London, Paris, New York, Hong Kong and other financial centres. It is part of Group Finance with reporting lines to Product Control.

PC Analytics aims to ensure that derivatives pricing are at market standards and compliant with regulatory rules. As such, it will define and enhance fair value and prudent valuation methodology, provide quantitative support to Product Control and work closely with the Independent Model Review function as well as Front Office quantitative/trading teams.

This role is for PC Analytics, within the Stress Testing work stream and will report to the Head of Stress Test Analytics. It is one of 2 Stress Test Analytics roles based from London, 4 other roles in the team are offshored.

The team is heavily involved in annual Regulatory Stress Tests, including those conducted by the PRA and Bank of England, Federal Reserve Bank and EBA. The quality of these submissions are heavily scrutinised by respective regulators, with stress test results from all participating banks being publicly disclosed annually.

This role will have responsibilities which include: (i) ensure stress test models are developed/enhanced in line with model governance standards and regulatory requirements; (ii) Adhere to the PC Analytics standards of always looking for new technologies/ approaches of problem solving (e.g. involvement in machine learning initiatives) (iii) regulatory stress test submissions are performed to a high standard; (iv) close working and stakeholder relationships (e.g. Traded Risk functions, Independent Model Review and the business) is maintained.

Key Accountabilities

Impact on Business


· Development/enhancement of quantitative methodologies for stress testing (e.g. current projects include developing new methodologies for CVA Wrong Way Risk under stress, modelling CVA on CCP counterparties, etc). Methodology development projects also include liaisons with other quantitative teams within the bank (e.g. Risk quants)
· Ensure all model governance standards (including independent model review) are adhered to.
· Participate and add value to machine learning projects/initiatives within the PC Analytics area. Consistently look for new and improved quantitative methods and their applications to Stress Testing.
· Understanding and interpreting Regulatory stress test requirements/scenarios and ensuring our models and methodologies are compliant.
· Producing stress estimates of major Fair and Prudent Value Adjustments during regulatory stress testing exercises.
· Perform in-depth analysis in CVA, Funding VA and other Valuation Adjustments stress results – leverage from portfolio/trade risks and identify/explain key impact drivers and risk concentration
· Partake in management presentations and address regulatory examinations.
· Ensure periodic monitoring of internal stress test estimates are performed and communicated to stakeholders
· Participate and present in regular stakeholder (Product Control, Development team, Market Risk, Front Office) catch up sessions to keep up to date with ongoing projects and deliverables.
· Work with Central Stress Test teams to ensure smooth communications between Risk, Finance and other stakeholders


Customers / Stakeholders


· PC senior management, Project Sponsors, Project Managers, GB&M business and Management Office, banking regulators.


Leadership & Teamwork


· Work with other areas within PC, Finance IT, Product Control, Group Finance, Liaise and work together with key stakeholders.

Operational Effectiveness & Control


· Encourage efficient and streamlined processes for PC Analytics.
· Ensure policy / methodology consistence across all business areas as well as across all sites globally
· maintain HSBC internal control standards, including timely implementation of internal and external audit points together with any issues raised by external Regulators;
· understand and ensure compliance with all relevant internal and external rules, regulations and procedures that apply to the conduct of the areas in which you are involved specifically Internal

Major Challenges

· Ensure deliverables are aligned to expectations and timelines, ability to work under pressure
· In depth analysis/investigation and developing suitable solutions
· Ensure our models and methodologies are compliant with regulatory requirements
· Ability to adapt to sudden changes in requirements and managing stakeholder expectations
· Communication with various key stakeholders globally
· Ensuring accuracy and high quality of deliverables

Role Context

· Establish close links with Product Control, Market Risk and the Business and Independent Model Review.
· Assist in addressing regulatory driven initiatives and change.
· Close working contact with senior managers (from the Business, Product Control and Market Risk).
· Maintenance of excellent relationships with internal clients and external auditors / regulators.
· Complexity of markets and products make this a challenging and interesting role.

Management of Risk

· Ensure that team governance and procedures are managed in accordance with the Group Standard Manual, Market Risk and Finance FIM, PC best practice guidelines and regulatory environment.

Observation of Internal Controls


· Maintains HSBC internal control standards, including timely implementation of internal and external audit points together with any issues raised by external regulators.
· Understands, follows and demonstrates compliance with all relevant internal and external rules, regulations and procedures that apply to the conduct of the business in which the jobholder is involved, specifically Internal Controls and any Compliance policy including, inter alia, the Group Compliance policy. x

Desired profile

Qualifications :

Knowledge & Experience / Qualifications

Education & Experience:

·  University degree (Class 2:1 or equivalent)
·  Masters or PhD degree in Quantitative Finance or in a numerical subject (Maths, Physics)

Skills and Competencies:

·  Strong analytical and problem solving skills
·  Excellent communication skills and interpersonal skills
·  Attention to detail and consideration of timelines
·  Knowledge of financial products: Rates derivatives, FX derivatives, CDS
·  Working knowledge of SQL, RStudio, Python and C++ programming,
·  XVA, other Fair Value adjustments and associated sensitivity is an advantage
·  Prior experience in Regulatory Stress Tests – understanding of BoE stress testing requirements and guidelines is a plus
·  4 years of working experience is preferred but we will consider shorter experience depending on degrees

As a business operating in markets all around the world, we believe diversity brings benefits for our customers, our business and our people. This is why HSBC is committed to being an inclusive employer and encourages applications from all suitably qualified applicants irrespective of background, circumstances, age, disability, gender identity, ethnicity, religion or belief and sexual orientation.

We want everyone to be able to fulfil their potential which is why we provide a range of flexible working arrangements and family friendly policies.

https://www.hsbc.co.uk/1/2/popups/uk-privacy-statement#/ overview
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