Purpose of Department
The Principal Desk exists to provide Securities Lending & Financing as well as FX execution services to our clients, which are considered as value added products to accompany global custody, fund administration and middle office outsourcing.
Principal securities lending encompasses the provision of fail coverage services to local custody clients and opportunity lending to the investment bank and broker dealer community.
Securities financing / Repo comprehends the optimization of the cash available from ALM in accordance with the Group collateral policy.
The Hong Kong desk forms part of a global principal lending offer, with other desks in Paris and London.
The other FX execution desks are located in Sydney, Paris and New York.
Purpose of Position
The purpose of the role is to maximise profit from securities lending, financing and FX execution within the business and regulatory framework.
Borrowing and lending equities on the following markets; Japan, Hong Kong, South Korea, Australia, Singapore, Thailand, so as to maximise P&L for the desk.
Borrowing & lending bonds (Asian and non-Asian) so as to maximise P&L for the desk.
Lend equities to fail coverage clients in local custody, to assist in settling their market trades.
Optimising ALM available cash positions in all currencies (via Financing or Repo trades).
Re-rating lent securities and cash positions when terms of the deal change.
Following the launch of the FX execution capacity, service existing relationships with clients.
Ensuring that all activities are carried out in accordance with regulatory and business requirements.
Constant check on credit risk and respect limits allocated to the activities.
Pushing the diversification of trading strategy for the Principal products.
Maintain and develop strong working relationship with counterparts and also beneficial owners. Plus, promote / market the desk externally and internally (market colour )
Adapting to changing regulations.
Act as an escalation point for Corporate Action and Operational issues.
Monitor fund holdings of exclusive clients to maximise securities lending opportunities.
Monitor withholding tax rates on respective markets and adjust trading where necessary.
Ensure effective co-ordination of trading / pricing with other Principal desks in Paris and London.
Implement recalls as a result of client sales within standard settlement cycles.
Booking returns from borrowers and returning to lenders when and where applicable.
Risk Analysis; where applicable, simulate trades versus credit lines in Risk Navigator and monitor credit line usage versus trading counterparts and exclusive clients.
Co-operate with Business Development, credit and legal and monitor the process of client on-boarding with client integration.
Principal desks (Equities, STIR & FX) in Sydney, Paris, London and New York
Credit / Risk Market & Counterparty Risk (MCRA) and Risk IM
Operations Settlements, Exposure, Statics, Billing, Reconciliations
Corporate Action & Income
Product Control, ORPC
Securities Lending counterparts Investment banks, broker-dealers, etc.
Fail coverage clients in the fail coverage programme
Market data providers
Industry bodies (where applicable)