About the job
As a Senior Manager in Derivatives Trading at Pilmico Foods Corporation, your primary responsibility will be to safeguard profit margins and stabilize the Profit & Loss (P&L) by crafting and implementing effective derivatives strategies aimed at hedging physical exposures. Your journey will commence with vanilla swaps (e.g., SGX M42), focusing on disciplined risk management and stringent adherence to risk limits while ensuring comprehensive coverage of the coal trading portfolio. This position demands innovative thinking in hedge structuring, close collaboration with the Risk Manager for approvals, and a progressive enhancement of Abaqa’s derivatives trading capabilities into more sophisticated financial instruments.
Key Responsibilities
Hedging & Risk Management
- Design hedge strategies that effectively translate physical exposures, including coverage ratios, tenor ladder, and rollovers.
- Execute trades on designated platforms (e.g., SGX M42), managing mark-to-market evaluations, margin requirements, and settlements.
- Continuously monitor basis risks, including quality differentials and freight routes against index benchmarks.
- Report on hedge effectiveness and slippage while offering actionable recommendations for strategy adjustments.
- Obtain necessary approvals from the Risk Manager prior to trade execution, escalating any breaches promptly.
- Adhere strictly to exposure limits and a no-proprietary trading mandate, concentrating efforts solely on protecting physical sales and profit margins.
- Collaborate with the Risk team on Value-at-Risk (VaR), mark-to-market reporting, stress testing, and backtesting of hedging strategies.
Market Development & Capability Building
- Enhance Abaqa’s presence within commodity derivatives markets.
- Utilize connections with banks, brokers, and trading firms to develop a robust counterparty network.
- Deliver hedge recommendations for physical positions in alignment with company policy.
- Advance capabilities beyond vanilla swaps to include more complex instruments such as spreads, options, and structured hedges.
- Investigate innovative approaches for managing basis risk and improving hedge effectiveness.
Collaboration & Compliance
- Work closely with Physical Traders to ensure hedge alignment with confirmed exposures.
- Coordinate with Finance, Legal, and Risk teams to guarantee compliance with contractual obligations, limits, and clearing standards.
- Ensure compliance with all OTC processes, including Know Your Customer (KYC), counterparty onboarding, and ISDA documentation.
- Support internal capacity building by documenting trading strategies and mentoring junior analysts.