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Does this mean jobs related to exchange traded derivatives are hot?

Morgan Stanley made a big move in exchange traded derivatives (ETDs) last week. It hired Clark Hutchison and Bill Templer, co-heads of exchange traded derivatives at UBS, in what the FT described as “an effort to become a top tier broker in the listed futures and options industry.”

Exchange traded products aren’t doing badly. According to the Bank for International Settlements, the value of outstanding European exchange traded derivative contracts rose around 3% last year. By comparison, the value of OTC credit default swaps fell 27% in the second half.

Morgan Stanley’s enthusiasm for ETDs might be because it wants to increase its presence in existing exchange traded markets for equities, interest rates, and currencies. However, it might also have something to do with the efforts afoot to move over the counter (OTC) credit derivatives onto exchanges.

Last Thursday, the US Commodities Futures Trading Commission unveiled a package of measures related to the OTC credit derivatives market, including the proposal that, ‘OTC derivatives must move onto regulated exchanges wherever possible.’

It’s still early days. However, it seems likely that jobs will be created by the standardization of the OTC market, and that people with experience of other exchange traded products will benefit.

“People will be sucked in from other asset classes,” says Dominic Connor of P&D recruitment. “They’re going to need market makers and modelers to support them. You could see thousands of jobs.”

Julian Manfredi of Investment Solutions Consultants also foresees job creation, but in asset managers rather than banks. “Not all derivatives will be exchange traded. You’ll need a number of operating models running side by side – OTC, ETD and hybrid, and there will be a certain amount of work associated with that,” he predicts.

Comments (16)

  1. Does this mean jobs related to exchange traded derivatives are the new Goldman Sachs?

    ps: Sarah, when is Henry’s next column??

  2. @Giuseppe. From now on we will be rationing the Goldman Sachs jokes to three a day, so we can have another two today and that’s it until tomorrow.

    I’m not sure what’s happened to Henry’s other guest comment. Sadly, I have no control over his activities.

    Sarah, Editor, eFinancialCareers Reply
  3. Will write one in the next month when I’ve settled more into Singapore life probably, just on what life as a banker is like out here vs the UK, an idiot nation who elect the BNP to represent them to Europe.

  4. Would this rationing be 3 per article per day, or per day across the board?

  5. @Giuseppe: one word – RETARD.

    Mr. Frank White Reply
  6. Three per day across the whole board, with special allowances for any deemed amusing.

    Sarah, Editor, eFinancialCareers Reply
  7. ‘Three per day across the whole board, with special allowances for any deemed amusing’

    Are any of them actually ‘amusing’ ?!!

  8. I think three ‘jokes’ a day is waaaaaaaay too much

    Henry for Prime Minister Reply
  9. ‘Would this rationing be 3 per article per day, or per day across the board? ‘

    @Giuseppe: You really are a pathetic specimen

  10. @Mr Frank White & @ ohdear, I`m way above you guys .. Couldnt care less :)

  11. Is talking about rationing the jokes the new INSERT NAME HERE?

    PS: Please note, as I have not mentioned any bank, this does not count in the rationing….

  12. @ MadameWHO? proud of you ..

  13. Is MadameWHO the new …..

  14. HAHAAH! Laughed my a** off with the MadameWHO comment – I mean is this a professional website or a forum for a Heidi Fleiss type operation? GET A BETTER TWITTER NAME SARAH! Which brings me on to my point: is Twitter the new Facebook?

    LaughingATmadame Reply
  15. @LaughingATmadame – It’s too late to change my Twitter name. Any alteration would require a rethink of my entire Twitter identify and the rebuilding of my entire empire of followers. Suffice to say I am not Heidi Fleiss; try focusing on the surname alone…. You could also follow Paul, whose identity is infinitely more sensible.

    Sarah, Editor, eFinancialCareers Reply
  16. Is EFinancialCareers the next ___ ______
    You know, the one established by Marcus Goldman in the 1860s?

    Merchant Banker Reply

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