Research Economist / Manager

Bank of England
London - United Kingdom
S: Competitive

The Market Infrastructure Division (MID), which will become the Financial Market Infrastructure (FMI) Directorate on 1 June, is responsible for supervising UK FMIs – the firms that are right at the heart of financial markets – and helping to design domestic and international regulatory policies to enhance the robustness of FMIs and the financial markets in which they operate. Specifically, MID supervises derivatives central counterparties (CCPs), securities settlement systems (SSS) and systemically important payment systems. And it helps to design regulatory policies on risk measurement, management and reporting, including through the Basel-based Committee on Payment and Settlement Systems (CPSS) and the European Securities and Markets Authority (ESMA).

Within MID, the Derivatives Policy Team is responsible for research into how alternative regulatory policy proposals may affect derivatives markets and the institutions that participate in them, including CCPs. This includes drawing lesson from other markets, such as the equity market, which have already encountered some of the changes faced by derivatives markets. The team is also responsible for using derivatives data to help measure and monitor systemic risks.

Brief Description
The main responsibility of the role is to conduct research into the potential effects on derivatives markets of alternative regulatory policy proposals and to use derivatives data to help measure and monitor systemic risks. In addition, and more so if filled at Band 3, the role would include representing the Bank on international policy working groups (on topics being analysed by the team) and some managerial responsibilities.

Detailed Description
The main responsibility of the role is to conduct research into issues such as:
· How to limit the scope for large margin calls against derivatives portfolios, which could cause liquidity stresses for the institutions receiving them, while maintaining adequate risk coverage of the margin models generating the calls.
· How to identify systemically important institutions in derivatives markets, whether because they are critical to its smooth functioning or a potential source of contagious losses.
· Which over-the-counter (OTC) derivatives should be mandated for central clearing? To which institutions should such a mandate apply?
· How will the mandate to trade certain types of OTC derivatives on electronic platforms affect market liquidity? How could those platforms be designed to enhance liquidity?
This would involve using large databases of individual financial transactions, which few researchers in the world can access, including one on derivatives trades that is newly available under European legislation. It would also involve presenting results at conferences and publishing them in Bank papers and external journals, to maintain the team's record in writing influential articles. There would be opportunities to work on projects with academic consultants.

Job Requirements
The successful candidate should be able to demonstrate strong quantitative analytical skills, for example, through a PhD or published research. In addition, the following attributes would be valuable:

· Ability to translate complex material into easily digestible conclusions and draw out policy implications.
· Effective verbal and written communication skills, including an ability to make a convincing case to Governors or other senior Bank staff when required.
· Good team-working skills.
· Familiarity with some quantitative analytical software, such as MatLab, SQL or E-Views. We would also offer training in this area if the applicant had appetite.
· Some practical knowledge of the participants in financial markets, their motivations and the contracts that they trade. This is not an essential up-front requirement providing there is a desire to acquire expertise in this area, and the job will offer substantial development opportunities in this regard.
· Experience – or an appetite to gain experience – on an international policy working group (especially to fill the role at Band 3).
· Some management experience (especially to fill the role at Band 3).

Job summary