Secondary Loan Trading Closer

Job description

Role Title: Secondary Loan Trading Closer
Business: Operations
New or Existing Role? New
Grade: GCB5

Role Purpose
· The Secondary Loan Trading Operations (SLT Ops) team provides global back office support for the Loan Sales and Trading team within Credit Trading. This current entity scope is London and Asia balance sheets, with planned expansion to include the US balance sheet. Secondary Loan support is end to end, Primary Loan support is closing only.
· The secondary loan trading operations team provides support for the Loan Sales and Trading team within Credit Trading.
· Secondary Closers are responsible for timely closing of PAR, Distressed and Claims trades and for sustained focus on clients and risk. Primary and Secondary closers may assist each other.
· Closing practices should meet documented standards (LMA, LSTA), working with the desk, counterparties, legal and agents to achieve timely settlement.
· The role holder is required to ensure that all functions and controls are completed on a daily basis.


Role Content

· Capture loan trades from recap emails onto the ClearPar closing system and/or master tracker by T+1
· Ensure all phases of closing are progressed within one day of receipt (by HSBC Closer), from booking through to producing closing memos once agents have agreed settlement
· Executing the ClearPar (or off line) process efficiently and effectively, including all closing document creation and collection of counterparty deliverables (confirmations sub-allocations, signatures, dates)
· Where Primary lifecycle events result in amendments, ensuring these are updated in ClearPar and instructed to Sentry/Loan IQ in accordance with procedures to accurately reflect risk and P&L.
· Ensure that instructions are actioned/communicated to keep ClearPar, Sentry and LIQ aligned throughout the closing process.
· Liaise with the Sales, Trading, Counterparties, Legal and Agents to ensure the smooth processing of transactions.
· Manage a portfolio of pre-settlement traded loans on ClearPar covering LMA , LSTA Par, Distressed and Claims through the trade and servicing lifecycles (including restructures where necessary)
· Proactive control of inventory and highlighting any bottlenecks to management and traders.
· Ensuring that all closing documentation satisfies LSTA/LMA procedural and internal audit requirements. Liaise with internal/external Legal as required by documents or issues.
· Prioritization of trades, taking action to drive the closing process, for aged/large/escalated trades
· Support the SLT Settlements team through project work as allocated to improve processes, procedures and systems operated within the team.
· Ensure trades can be settled quickly and efficiently including use of multi-lateral netting docs where possible.
· Maintenance of the master tracker at end of day to ensure that tracking, metrics consolidation and reporting is accurate and transparent


Customers / Stakeholders

· Customer issues are handled sensitively, receive full consideration and situations are resolved by building goodwill
· Continuously analyse the product, process and system knowledge of each team members to prevent dilution of knowledge within the team
· Client and key stakeholder issues are proactively identified, resolved, escalated and appropriate measures are taken to improve quality and prevent recurrence
· Close liaison with internal business, risk and finance stakeholders and with key external clients or agents as needed
· Role holder will be required to work closely with all desk trading and other key support functions (Legal, PC, AMLO, Compliance, Risk and Operations Seniors)
· Ensuring that all queries both internal and external are responded to in a timely manner, seeking guidance where required.
· Monitor Agents, shorts and counterparties for systemic issues or concerns with trade settlement and escalate these to management in a timely manner for risk or expedience.


Leadership & Teamwork

· Deep knowledge of functions and proactively developing technical, soft skills and teamwork
· Proactively engage in monthly one on one meetings with manager and the business.
· Extend support to colleagues by taking on redistributed work, etc
· The role must operate autonomously so strong communication and technical skills are needed.
· Continually work to improve the end to end process with peers across SLT Operations and the business, and support broader initiatives of the business unit or utilities as needed

Operational Effectiveness & Control

· Effective controls are key to meeting business, regulatory and industry requirements
· Ensure adherence to FIM / Controls and measured escalation of all incidents/risks
· Is aware of operational risks associated with the function and has a strong risk culture.
· Promptly raise control and process issues with management, attend weekly controls meetings and provide MI to highlight volumes, issues and risks with actions to resolve.
· Consider risk at all times, know exceptions in detail and own the articulation of risks and actions to resolve. Be prepared to present all commentary in weekly risk and control meeting
· Working with Technology and Operations colleagues to ensure successful delivery of BAU tasks, governance and changes when required
· Work towards improving settlement times through the efficient use of metrics, escalation, tactical and strategic solutions.
· Actively participate in the review and standardisation of global procedures, retained and governed by the SLT Ops Bangalore team
· Minimize operational losses and ensure root cause is understood and appropriate actions taken
· At all times will act according to private side compliance requirements both for HSBC and also where committed to accommodate the private side nature of counterparties or businesses (ie strict adherence to credit contact for information sharing).
· Completion of the daily End of Day (EoD) checklist, and escalation of workflow or risk issues

Major Challenges

We work in a changing environment with increased targets and significant internal initiatives, both for loans and wider initiative to strengthen HSBC capability. Ability to embrace change and drive improvement. A proactive and hands on approach to both high level initiatives as well as day to day processing.

· Understanding multiple systems and change initiatives and their impact on HSBC front to back.
· Meet demands of new business and processes via the NPDD and TAP process.
· Fully understanding the complex nature of the HSBC organization, infrastructure and limitation will be necessary to ensure effective and controlled solutions are in place.
· Improve efficiency through regular review of existing processes and refine where appropriate.
· Minimize operational losses and ensure root cause is understood and appropriate action
· The nature of the loan markets results in regrettably frequent issues and delays to settlement. Whilst some are commercial in nature, others are operational (both internally and externally). It is a continual challenge of the role to identify where such issues exist, or are likely to exist, in order to escalate in a timely way to gain traction with other teams (both internally and externally).

Role Context
· HSBC is a global player in investment banking, corporate banking, retail and wealth. The Global Banking and Markets (GBM) division provides global investment banking services to Corporate and FI clients.
· Lending and ancillary business is a key part of the GBM offering. HSBC Agency and Loan Portfolio services are aligned with the HSBC Security Services division (HSS, also part of GBM). Secondary Loan Trading Operations is a part of GM Operations, aligned to the Credit Trading business in Global Markets (GM).
· SLT Operations also provides services to other parts of GBM who distribute or trade loans or associated risk (eg LAF, Syndicate, TRS desks). However, the majority of volumes and risk are in support of the Credit Trading business.
· Following a period of rapid growth of credit trading in HSBC, we support the London balance sheet where we manage both UK and US Leverage loan trade settlement. At the time of writing, one headcount has been added in Hong Kong to support Asia directly (but to one standard, processes and controls).
· Due to the success of the credit trading business, the SLT team has grown from nine staff in 2017 to twenty one in 2018, including the addition of a team of six in Bangalore. This expansion has allowed for improved segregation of duties with the addition of middle office desk support, middle office trade control, closing, servicing and settlement functions.
· The jobholder is responsible for closing secondary loan trades and will be responsible for all aspects of this, including the coordination of documents and schedules with counterparties, agents and, where necessary, other SLT Operations teams (eg engaging with restructures). Reporting line is into the head of SLT Operations in London.

Role Dimensions
· The business is event driven so from time to time volumes will peak significantly and a flexible approach to work is required (ie assist secondary during troughs, or support assigned staff through peaks).
· Currently we are planning significant investment to integrate and automate our processing capability, which is an exciting opportunity for all to engage in building the foundations to support significant business expansion.

Management of Risk
· The role holder must develop their own and colleagues risk awareness of the closing process and contribute to an open risk culture.
· Open trades, metrics, controls and workflow must be continually reassessed to ensure the operational risks are managed effectively. Consideration must be given to changing market conditions, legal and regulatory requirements, operating procedures and practices, management restructurings and the impact of technology change.
· It is critical that the role holder can identify, articulate, escalate and resolve risk issues in a timely manner. Support will be available, however, the role holder is expected to demonstrate ownership of their own risk culture.

Observation of Internal Controls

· The role holder must become fully conversant with the GM FIM and Loans RCSA key control framework, as well as local operational controls. It is essential that they uphold HSBC internal control standards.
· Closers must understand, follow and demonstrates compliance with all relevant policy and regulations that apply to the conduct of the business. Specifically internal controls and Compliance requirements including, inter alia, the Group Compliance policy.
· Particular attention must be paid to the private side nature of the loan business in relation to all policies and procedures (especially with regard to communication).

Desired profile

Qualifications :

Knowledge & Experience / Qualifications

·  For PAR Closer roles, a proven knowledge of a loan middle office or operations role is essential, preferably in a documentation related function. Previous closing experience is helpful.
·  For Distressed/Claims Closer role (including internal development), previous knowledge of PAR closing is essential.
·  Strong communication skills to deal with both internal and external clients, including front office trading staff, Legal & Compliance.
·  Strong organisational skills and the ability to prioritise work, to ensure transaction deadlines are achieved.
·  Pro-active problem solving attitude.
·  Able to deliver high work standards, with attention to detail and under pressure.
·  Knowledge of Loan IQ, Sentry or ClearPar is very helpful.
·  Good excel and analytical skills.


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.

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