Position profile: money market dealer
Murray Davis SA Fin, Associate – Money Market Dealer, Goldman Sachs JBWere
Industry sector: fund manager/investment bank
How did you get to where you are today?
After completing a three-year Bachelor of Science degree at University of Queensland, I decided to study some management subjects. I found I really enjoyed the finance subjects and re-enrolled in the Master of Commerce – Applied Finance course. This comprehensive course introduced me to a broad range of disciplines within the finance industry. With this degree I felt comfortable applying to full-service financial services firms and soon I found employment with Goldman Sachs JBWere.
In my first role as a member of the Treasury Reporting team, I was involved in the daily reporting of the ASIC enforced regulations. The team monitors the entities that hold an Australian Financial Services License, or are otherwise regulated, and ensure that each entity is in compliance with the regulatory rules. This was a very interesting entry role that offered a broad overview of the firm.
After 18 months in the reporting role I moved to a new role, working with three others, managing the liquidity and foreign exchange risks for the treasury. This role provides a lot of access to the money markets (short term interest rates) and foreign exchange markets, which was an aspect of work that I was particularly looking for from the time I was studying.
What does a typical day involve for you?
As interest rates and foreign exchange is traded all around the world and are extremely heavily traded, a role in these markets can be a 24-hour, six-day-a-week job. If markets are volatile or there are particularly important ‘market-moving’ events happening in other markets, these roles can require late nights or early mornings.
A more typical day starts by discovering, through various sources, what has happened overnight in the other major markets around the world and identifying the impact on the markets and the firm. Further, by talking to banks and other financial institutions the group forms a view of the market on the day. The position of the firm is considered and any adjustments that need to be made are. Data is particularly important to trading and a lot of time is allocated to building expectations for data and positioning the portfolio to take advantage of any movements.
Clear lines of communication with the other areas of the firm are important in this role as the funding and hedging requirements can often be quite complicated.
What interpersonal skills are essential to your role?
Communication is very important in roles such as these. All trades are ‘Over-The-Counter’, whereby the deal is made orally over the phone. Clarity in expressing decisions is very important.
Clear thinking is important, as there are many factors to think about at any one time.
A sense of ‘fair-dealing’ and ethical behaviour is important. Given dealing happens on a personal level, trust for the counter-party is integral.
What sort of person is good in this role and type of organisation?
People who are inquisitive and outgoing would tend to be better suited to these roles. A genuine interest in what influences the markets and drives movements is essential as is the ability to work with many different personalities (the counterparties)
What do you find the most rewarding about your current role?
Building and maintaining solid relationships with counterparties is satisfying on a personal and professional level. A reputation as a fair and competent counterparty is also very good for the firm.
Successfully managing the portfolio (hopefully profitably) for the firm is obviously very rewarding. As with most areas in the finance industry, the financial reward can also be very appealing if the job is well done.
What do most people find challenging/difficult about a role like this?
The most difficult part of the job is developing an understanding of what are the major influences on the market. Trying to understand the relationship between historical information, factored-in expectation, large institutional positions, international relativities etc is very complex.
What were you looking for in an employer when you took your current role?
I was most interested in joining an industry leader with a solid reputation. It was essential that it be a full-service financial firm that could offer me opportunities to experience different aspects of the industry and offer the opportunity for career progression.
What types of benefits are essential to attract the best people?
Financial incentives will always be the base for attracting employees. Offering inter-departmental networking opportunities benefits both the company and the individual. It may offer more cross-selling and career progression for the individual. Access to senior management is very beneficial and enlightening for younger employees who really want to know who they are working for.
What other jobs and career paths could you consider in the future?
A job in the market can offer many opportunities such as:
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moving to sell-side
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moving to origination
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moving to other trading roles with different products
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treasurer, CFO, management positions
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asset management
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asset consultant.
How do you keep up to date?
I maintain membership of several industry organisations. There is a lot of communication within the industry which also keeps participants informed.
Are you considering any study or professional development in the future?
I am currently a candidate of the Level 3 of the Chartered Financial Analyst program
Why did you become a member of Finsia?
I wanted to be a committee member and founder of the Finsia Young Finance Professionals.
What tips for success can you give to aspiring dealers?
Be proactive.