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U K M A RK E T UPDATE J AN UARY 2014 1


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CONTENTS Introduction

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Commodities Sales & Trading

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Compliance

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Corporate Banking & Structured Finance

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Economics & Strategy

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Financial Services Sales & Marketing

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Financial Technology

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Fixed Income

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Fund Management

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Investment Banking

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Quantitative Analytics

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Quant Research & Trading

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Risk Management

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About Selby Jennings

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INTRODUCTION As part of our commitment to provide our clients with regular, up to date, industry specific market intelligence, we are delighted to present the first Selby Jennings Market Update for the UK. We have chosen to keep this report anonymous, as we believe that information regarding who is hiring, firing and moving is readily available ,but the broader trends and factors influencing the City Recruitment Market are not. We have created the report to reflect the micro-specialist nature of our own business. Should you want additional information or more detail related to a particular vertical market, please do not hesitate to contact me directly. I would also welcome your feedback on this report and any suggestions you may have for content or the format going forward. Kind Regards,

Miles Stribbling - Head of UK Strategic Partnerships miles.stribbling@phaidoninternational.com 0207 019 4188

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COMMODITIES SALES & TRADING -- Following poor market conditions for the past few years, we are starting to see a real uplift in recruitment activity from some of the Canadian and Chinese banks and Emerging Markets Trading Houses. -- Increased regulation and the capital required to handle the assets has led to considerable culls across the physical teams within the major US and European banks. -- Mandarin language skills and any Chinese work experience is in high demand in London and Asia, particularly when combined with experience of hands on working within a commercial environment and an active list of clients. -- Physical or Asset Backed Trading/ Sales experience is also in demand. -- Some products in particular demand are BioMass, Renewables and LNG.

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COMPLIANCE -- With the onset of increased regulation within Buy Side firms, there is a significant demand for experienced and senior Compliance professionals. -- Banks are having to work harder to retain their Compliance staff, who now have a number of different career options available to them. -- Compliance now attracts individuals from other areas of the industry than was typically the case. Candidates now come from the Front Office, and Risk is seen as a good entry point for newly-qualified ACA, ACCA, CFA applicants. -- Roles focussing on AML or Counter Terrorism Financing, which were not previously typically associated with Banking. have become well-paid and highly attractive to those looking for a challenge and variety. Employers have to look further afield for talent and there is a shift towards candidates with backgrounds in Intelligence and Technology.

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C O R P O R AT E B A N K I N G & S T R U C T U R E D F I N A N C E -- The majority of recruitment activity is limited to Project and Structured Finance positions, notably within Shipping, Aviation, Oil and Gas and Infrastructure. -- Increased liquidity of the market and a desire to work with more tangible assets is driving this activity, which in recent years was the domain of the Japanese banks. -- Shipping Finance is experiencing a re-emergence of interest, led by a number of Scandinavian banks and the Singapore market.. -- January saw a pick-up in the appetite for DCM, tracking the increase in Fixed Income business. There is certainly a major drive to attract DCM professionals to the Middle East where there are numerous opportunities in Qatar, Abu Dhabi and Dubai.

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E C O N O M I C S A N D S T R AT E G Y -- The majority of companies are now looking for a combination of experience within the influential Central Banks (typically with existing credibility and strong network) as well as an understanding of the econometrics behind the business. -- There has been a significant drop-off of client strategy roles, whilst pure research roles are virtually non-existent. -- There has been an increase in the demand for Emerging Market country specialists at Associate level, typically with language skills. -- Buy Side Investment Strategy tends to be looking for candidates with more cross-asset specialist experience or Global Markets backgrounds.

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FINANCIAL SERVICES MARKETING

SALES

&

-- Recruitment activity within Sales and Marketing remains reasonably quiet as the market slowly get back to its feet. -- We have seen a demand for language skills, particularly Eastern European, Russian and Chinese languages, combined with more in-depth product knowledge, as it is proving harder for candidates to switch between traditional and alternative asset classes. -- The industry experienced a considerable cull of roles within Client Services, which resulted in a number of teams moving intact to employers outside of traditional Financial Services. -- At this stage, we anticipate bonuses being reasonably on-par with expectations.

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FINANCIAL TECHNOLOGY -- The demand for Python skills is as competitive as ever. Over recent years the banks have been the major players competing for Python skills, however we are now seeing smaller Trading Houses and boutiques competing and using Python as their language of choice. -- C# is another product that remains in demand. Traditionally this has been a contract driven market in London, however we are seeing a big shift to permanent opportunities available. -- The need for hardware experts (FPGA/ VHDL) is becoming more prevalent as organisations look to develop their own proprietary hardware to gain competitive advantage. -- With the growth in Algo/ Electronic trading in Asia, we are starting to experience a skills drain to the East. More candidates are starting to consider relocating as an option. -- There is a continued trend in technologists moving away from Financial Services to join larger non-Financial Services corporates (Google, Microsoft etc.) and Boutique Tech Start-ups. Skilled candidates have a diversity of opportunities that they have not faced previously and banks are struggling to attract junior technologists when faced with these competitors.

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FIXED INCOME SALES & TRADING -- Much of the demand we have seen remains in the Flow Space, particularly Emerging Market Flow Sales and Trading. There are pockets of activity in the Fixed Income Solution Space generally from boutique or emerging names who are offering Structured Funding Solutions to clients, whereas, many major players are unable to do so due to increasing balance sheet/ regulatory constraints. -- January has seen a flurry of activity in the Flow FX Sales space at senior level. A number of organisations have been looking for senior producers providing solutions for the UK Mid Cap market. -- Following the recent LIBOR/ NDF rigging scandals (Singapore), there is a high degree of uncertainty regarding bonus levels this year. Whilst performance may have been better in 2013, it is not expected to be fully reflected in bonuses. -- Following the large scale redundancies made over the past few years, traditionally smaller players have been able to make some ‘bargain hires’, recruiting highly experienced individuals who have been able to start almost immediately, without buy-outs, non-competes or inflated salaries etc. We believe that salaries will need to return back to ‘normal’ to attract candidates away from an existing employer, as the number of candidates out of work drops off.

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F U N D M A N AG E M E N T ALTERNATIVE INVESTMENTS -- With a great number of the large players losing stability across their platforms, we are seeing considerable hiring activity across Family Office,s Private Investors and Discretionary Wealth Houses. Almost all of these hires have been within Fixed Income and/ or the Multi Asset Investing Space. -- There has also been an increase in replacement hires based on employees moving from the UK to continental Europe.

CREDIT -- Following a number of years of predominantly recruiting individuals at the Analyst to VP level, we are starting to see a real interest in senior level candidates that can bring new ideas and innovation to their clients based on their previous experience within this market. Senior professionals with over 15 years’ experience in Alternative Investment Strategies in Credit are in high demand including professional with Illiquid, Debt and Direct Lending knowledge.

FIXED INCOME -- As firms continue to review and consolidate their Fixed Income portfolios, we are seeing very little activity within this market. However, from recent market discussions, we do believe Fixed Income Research Teams of larger Asset Managers will be actively hiring over the next quarter.

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EQUITIES -- There are two quite distinct patterns within the Buy Side Equities recruitment market: 1. An increased interest in candidates with 1-3 years’ experience. This includes either: -- Candidates with an ACA, M&A background within the Sell Side, who can be nurtured into their role much like a junior trainee; or -- Experienced Fund Managers, with an established and successful track record, with a view to set up and run their own Discretionary Fund. Hiring at the junior level commenced earlier than usual in 2014 and it is anticipated that resignation letters will be in hand following payment of Sell Side bonuses. There is very lithe activity at the Senior Analyst level. 2. With commodity prices having dropped steeply over the past few years, there is a renewed interest in the Mining sector from both public and Private Equity investors. This is leading to a growth in Natural Resources Funds.

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INVESTMENT BANKING -- The demand for strong Senior Analysts Associate Levels 1 and 2 remains high. In particular, those with a proven track record of transactions and foreign languages. -- TMT, Consumer and Infrastructure teams have had a strong start to 2014 and are recruiting at mid-level to senior-level, whereas the majority of activity in Infrastructure has been limited to more junior hires. US Bulge Bracket Banks, Pension Funds, Sovereign Funds and Institutional Investors are actively on the hunt for new talent.The leading UK banks and European banks are letting staff go or struggling to retain the best ones. -- The ongoing challenge to raise funds anywhere is making the decision to move employers a tough one. We anticipate bonuses being reasonably in-line with expectations.

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Q U A N T I TAT I V E A N A LY S I S -- We are experiencing a demand for Quants with experience of Structured Derivatives or Exotic products for the first time in a number of years. This supports the current increased appetite for taking risk in the market. -- Demand for Quants in advisory roles is significantly increasing from the Data Analytics houses such as Bloomberg, Thomson Reuters and Markit. Expansion of this industry will continue to put strains on the demand for talent. -- Also exerting pressure on prospective employers is the fact that current employers are working very hard to retain their own talent. A lot of Quants have been encouraged to move to Risk Methodology roles or positions with Risk Valuations which massively reduces the Talent Pool. The cost of identifying, hiring and training new staff is now hugely overshadowed by the cost of losing an employee to a competitor.

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QUANT RESEARCH & TRADING -- There is a considerable focus on the build-up of Electronic Trading (AMM) platforms. We are seeing a real interest in more senior candidates coming from the Buy Side, Hedge Funds and Prop Trading Houses to drive and implement these new platforms. -- Recovery in the Quant Equity space is being led by the US. There has been a shift towards a more ‘alpha generator’, as opposed to a statisticians skillset. -- As modelling starts to incorporate more of a strategic outcome, the demand for pure modelling skills is falling.This is driving a preference for PhD qualified candidates, as opposed to those with an MSc.

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R I S K M A N AG E M E N T -- We have experienced a significant upturn in Risk related recruitment activity in January, almost approaching a record number of interviews being scheduled. -- We have seen increased hiring within the Funds market, in particular within Equities Funds which can be seen to signify an improvement in market confidence. -- Increased hiring across Hedge Funds and other Buy Side firms, is a result of the increase of lending by the banks, as well as an indication of the ongoing commitment to Basel 3. -- Credit Risk Analysts are in high demand and short supply, particularly with a Corporate or Financial Institutions focus. A lot of these roles were re-aligned or cut over the past few years but are now required as the market becomes more buoyant. -- The majority of roles being approved are new roles, not replacement hires.

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ABOUT SELBY JENNINGS Operating as part of the Phaidon International group, Selby Jennings, is a multi-award winning global recruitment organisation focused on servicing the financial industry. By breaking down financial markets into individual niches and micro-specialisms, Selby Jennings powers a knowledge-led model, delivering global solutions into local markets. Every consultant is an expert in their field. Structuring our teams to mirror the demands of our clients and candidates, we identify, qualify and present the highest calibre candidates, as well as identifying the best market opportunities for leading finance professionals. From our offices in London, Singapore, New York and Zurich, we recruit beyond international boundaries, pro-actively sourcing the best talent in the industry across contract and permanent hires. Covering contract and permanent placements, our market coverage is as follows: -- Accounting & Finance

-- Fixed Income Sales & Trading

-- Buy Side Sales & Marketing

-- Fund Management

-- Capital Markets Structuring & Origination

-- Fundamental Research (Equity/Credit)

-- Commodities Sales & Trading

-- FX Sales and Trading, and E Commerce Sales

-- Compliance

-- Investment Banking and Private Equity

-- Corporate Banking, Trade Finance & Structured Finance

-- Quantitative Analytics & Price Testing

-- Economics & Strategy

-- Quantitative Research and Trading

-- Equity Sales & Trading

-- Risk Management

-- Financial Services Sales & Marketing

-- Structuring

-- Financial Technology

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W E A RE PA RT O F P H A I DO N I N T ER N AT I O N AL : M IC RO-S PE C I A L I S T S TA F F I N G G RO U P

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8 specialist recruitment brands

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4 recruitment solutions: Contingent Recruitment across permanent and contract hires, Executive Search, Annual Retained and Market Intelligence

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33 awards won for our specialist recruitment services

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Proud to deliver excellence to clients across 44 countries

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I N T E R N AT I O N A L

Selby Jennings is part of Phaidon International

enquiries@selbyjennings.com www.selbyjennings.com LONDON

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London: Phaidon International (UK) Ltd. Registered in England. Company No. 5134675; Singapore: Phaidon International (Singapore) Pte Ltd. Licence No. 13C6685. Company No. 201314810G; New York: Phaidon International (US) Inc. Registered in NY State; Zurich: Phaidon Capital (Schweiz) GmbH. Licence in Geneva and Zurich. Company No. CH-6600972012-8. For further information regarding our global presence, legal structure, business entities and trading styles please visit: www.phaidoninternational.com/global-presence.

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Market Update: January 2014  

As a specialist Financial Services Recruitment Provider, we are pleased to provide our clients with specialist market intelligence, hiring r...

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