Front Office BA

London, South East England

IBOR transition is one of the key transformation challenges for the financial industry and impacts all regions in which HSBC operate and the wide range of clients we provide products and services to.

On 27 July 2017, the Chief Executive of the UK Financial Conduct Authority (FCA) announced that the FCA did not intend to persuade or compel banks to submit rates for the calculation of LIBOR after 2021. Since then, regulators, national working groups and market participants have focused on how the market can transition away from LIBOR to alternative RFRs within this timeframe.

In its Interim Financial Stability Report published in May 2020, the Bank of England emphasised, in light of recent market volatility, the continued importance of the transition away from LIBOR.

Regulators recognise that the transition is complex. The actions of market participants during, and in managing, the transition could impact the effectiveness of the derivatives, loans and bonds markets. Uncertainties associated with the transition may make it harder for firms to identify how to treat their customers fairly, and to demonstrate that they have done so. Moreover, it is important to note that adverse client or market outcomes may arise through no fault of the market participant.

In highlighting these uncertainties, and the steps that market participants could take to manage such uncertainties, HSBC aim to achieve a fair and effective transition from LIBOR benchmarks.

The GM IBOR Transition Programme has been set up to manage the transition across products and regions globally for HSBC. As we move from the planning stage to the implementation stage we are looking for additional resources to support our Trading teams through the transition process.

The Senior Business Analyst role is based within the Global Markets ("GM") trading team, and will work as part of a task force to support Trading and CEM desks to review client exposures, propose repackaging strategies and ultimately recommend a Risk Free Rate transition price to clients.

Your responsibilities will include:

  • Identifying all required client LIBOR exposures per client transition requests
  • Analysing the LIBOR portfolios and proposing strategies to help clients move their portfolios to alternative risk free rates
  • Understanding the regulatory and legal (e.g. ISDA protocols, bespoke bilateral agreements) landscape for impacted products and reference rates to advise best pricing options
  • Ensuring all client IBOR transition price requests are answered promptly within agreed SLAs
    • Responsible for liaising with Sales, Trading and Operations to ensure client portfolios are transitioned in an optimal capacity
    • Reporting progress of client transitions to Trading and Sales management
  • Attending Trading desk team meetings to discuss strategies and agree focus areas

The ideal candidate for this role will have:

  • Experience pricing linear and/or non linear Fixed Income products including Interest Rate Swaps, Cross Currency Swaps, Structured Notes and Swaptions/Cap/Floors
  • An excellent working knowledge of the LIBOR transition and understanding of the industry proposed fallback rates and calculations
  • Confident MS Excel user to analyse customer data sets
  • Strong communicator who can liaise with multiple stakeholders across Sales, Trading and functions
  • Previous derivative trading or structuring, or structuring sales experience desirable
  • A desire to find ways to continually improve processes and service delivered
  • Set and achieved challenging short, medium and long term goals which exceeded the standards in their field
  • A flexible and adaptable attitude
  • Excellent written and spoken communication skills; an ability to communicate with impact, ensuring complex information is articulated in a meaningful way to wide and varied audiences
  • Contributed productively to team objectives, sometimes supporting and sometimes leading activities to achieve shared goals
  • An understanding of risk management and ability to ensure own/others’ compliance with relevant regulatory processes