BANKING: BUSINESS AREA
reduced headcount, there is still a need for the human
touch especially when trading the more illiquid or
SUNDEEP DHONSI, CFA
exotic trades.
Equity derivative departments typically comprise Title: Trader, Equity Derivatives
sales and research as well as trading and structuring.
Group
Th e most common form of equity derivatives are
Current employer: JPMorgan
futures and options. Th e latter gives the buyer the
Universities: University of
right, but not the obligation, to buy or sell a given
Bristol/ University of California
quantity of the underlying instrument. Th e contract
Degrees: Masters in
Aeronautical Engineering
specifi es a future date on or before which the option
Professional qualifi cations: CFA
can be exercised. A future, by contrast, is an
undertaking to buy or sell a standard quantity of the
underlying instrument at a future date and at a fi xed
What attracted you to this career path?
price. Delivery of a future is rare as most investors
Unlike many other career paths, a career in trading is really
close out their positions by undertaking equal and
down to what the individual makes of it. Progression can be
opposite trades. As futures are standardised derivative
very fast as can the level of responsibility if the individual
contracts, they are traded only on recognised
delivers more than what is expected of him/her. The high
exchanges. expectations and exceptionally talented competition within
the industry appeared as a great challenge as such an
SKILL SETS environment pushes you to strive harder. It is very hands on;
Th e equity derivative salesperson is expected to market the way to learn is to actually trade and you are given the
and devise strategies on the diff erent tradeable opportunity to do so after you prove you are competent and
products including options, swaps, futures and
have drive. Success is easily measured in this job as trading
correlation/volatility strategies. In addition, he or she
revenues are transparent on a daily basis.
will work closely with traders to achieve best
execution and assist in hedging risk. Researchers
What are the major challenges you face in your position?
develop models for pricing, trading, hedging and risk
This job involves taking trading decisions all day long and as
management for the diff erent products. Th ey work in
the fi nancial environment toughens and becomes more
tandem with the sales, trading and technology teams
uncertain the role becomes a lot more challenging. It can be
to help build these innovative structures. As for the
very challenging when you take trading decisions that are
structurers, they focus on developing customised
not favourable and even more challenging when you have to
equity options, equity-linked products and exchange-
decide whether to add to the trading position or cut it. You
traded equity options.
have to quickly and continuously adapt as the environment
Working in the derivative space requires an
and sentiment changes.
advanced degree in mathematics, economics, physics,

computer science or similar disciplines. It is also
Are there certain skills you would consider useful for
your job?
important to have a strong grounding in fi nance as
Sound mathematical background, quick thinking and being
well as the ability to programme complex fi nancial
able to take decisions quickly and follow them through. Also
models. Equally important are strong communication
you need patience, perseverance, commitment and a good
and interpersonal skills.
Cg
appetite for risk.

How do you think the role you’re in now will change
over time?
“There is still a need for the
The role changes all the time given changes in the market
place. What is important is that you are fl exible and are able
human touch especially when
to change the way you think and trade quickly.
Do you have advice for someone intending to pursue the
trading the more illiquid or
same career path?
Research which product you want to trade and then apply for
an internship as you only really learn what this job is all
exotic trades ”
about once you actually try it.
WWW.CFAUK.ORG CAREERS GUIDE 2009 65
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