Derivatives Sales Trader - Arbitrage - Financial Institution

Job Title: Derivatives Sales Trader - Arbitrage

Location: Mumbai

Reporting to: Head of Cash and Derivatives Sales Trading

About Our Client:

Our client is a leading and well-respected financial institution with a significant presence in the Indian capital markets. Their Institutional Equities business is known for its deep market understanding, robust execution capabilities, and commitment to providing sophisticated solutions to its diverse client base. They are currently focused on strategically expanding their derivatives trading capabilities, with a particular emphasis on building a market-leading arbitrage desk. This initiative underscores their dedication to innovation and delivering exceptional value to their institutional clients. They foster a dynamic and growth-oriented environment, attracting top talent and investing in cutting-edge technology to maintain their competitive edge.

About the Role:

- This is a pivotal role for a highly driven and experienced Derivatives Sales Trader specializing in arbitrage strategies. The successful candidate will be instrumental in establishing and growing our client's arbitrage trading desk, leveraging their strong existing client relationships to generate significant business.

- This individual will be responsible for the entire lifecycle of the arbitrage business, from client acquisition and trade execution to optimizing the technological infrastructure and building a high-performing team. The focus will be on capitalizing on market inefficiencies across both cash and derivative instruments to deliver superior trading opportunities to clients.

Responsibilities:

Business Development & Client Relationship Management: Leverage and expand a strong network of relationships, particularly with local Mutual Fund arbitrage desks and, ideally, foreign Proprietary Trading firms and Hedge Funds, to drive revenue generation for the derivatives arbitrage desk.

Arbitrage Trading & Strategy Execution: Identify and execute various arbitrage strategies across cash and derivative markets, including but not limited to daily arbitrage churn, rollover level analysis, dividend arbitrage, and special situation arbitrage (corporate actions, mergers, etc.).

Technology Optimization: Evaluate the current technology infrastructure, identify areas for improvement, and collaborate with in-house and external technology teams to optimize for ultra-low latency and best-in-class pricing for clients, ensuring business continuity.

Technology as a Differentiator: Work closely with technology teams to conceptualize and implement innovative technological solutions that provide a competitive edge in the derivatives arbitrage space, generating new business opportunities.

Team Building & Leadership: Take ownership of hiring, training, and mentoring a team of highly skilled individuals to build out the derivatives arbitrage desk, fostering a culture of excellence and continuous learning.

Risk Management & Compliance: Adhere to all regulatory requirements and internal risk management policies, ensuring all trading activities are conducted ethically and within established guidelines.

Market Analysis & Insights: Stay abreast of market trends, regulatory changes, and technological advancements to identify new arbitrage opportunities and provide valuable insights to clients.

Experience:

- Minimum of 5 years of experience as an Arbitrage Sales Trader within a reputable financial institution.

- Proven track record of establishing and maintaining strong client relationships, specifically with local Mutual Fund arbitrage desks. Relationships with foreign Proprietary Trading firms and Hedge Funds will be a significant advantage.

- Demonstrable experience in executing daily arbitrage churn strategies.

- Strong understanding of rollover levels and the ability to apply analytical skills for trading decisions.

- Experience in identifying and executing dividend arbitrage trades.

- Proven experience in capitalizing on special situation arbitrage opportunities (corporate actions, mergers, etc.).

- Familiarity with trading platforms and order management systems.

- Experience working with technology teams to implement trading solutions.

- Prior experience in building and leading a trading desk is highly desirable.

Education:

A Bachelor's or Master's degree in Finance, Economics, or a related quantitative field from a recognized institution. Relevant certifications will be an advantage.

Skills and Knowledge:

Deep Understanding of Derivatives Markets: Comprehensive knowledge of various derivative instruments, including futures, options, swaps, and their pricing mechanisms.

Strong Grasp of Arbitrage Strategies: Thorough understanding of different arbitrage techniques, including index arbitrage, basis trading, volatility arbitrage, convertible arbitrage, and fixed income arbitrage.

Analytical and Quantitative Skills: Exceptional analytical abilities to identify and evaluate arbitrage opportunities, coupled with strong quantitative skills for risk assessment and trade execution.

Market Microstructure Knowledge: Understanding of market dynamics, trading protocols, and regulatory frameworks in the Indian equity and derivatives markets.

Technical Proficiency: Familiarity with trading platforms, order management systems, and data analysis tools. An understanding of low-latency trading infrastructure and its optimization is highly advantageous.

Communication and Interpersonal Skills: Excellent communication and presentation skills to effectively interact with clients, internal teams, and external partners. Strong negotiation and influencing skills are crucial for business development.

Problem-Solving and Decision-Making: Ability to think critically, solve complex problems, and make timely decisions in a fast-paced trading environment.

Risk Awareness and Management: A strong understanding of risk management principles and the ability to operate within defined risk parameters.

Regulatory Awareness: Knowledge of relevant regulations and compliance requirements governing derivatives trading in India.