Spec FFA Trader

at  Trafigura

Main Purpose:
The Spec FFA Trader will be responsible for trading freight derivatives (Forward Freight Agreements - FFAs) to hedge risks and speculate within the physical commodities market. This role involves analyzing market trends, developing trading strategies, and executing trades to maximize profitability while managing exposure. The trader will leverage their extensive experience in metals and freight trading, as well as their proficiency in machine learning and fundamental analysis, to generate innovative trade ideas and drive performance.
Knowledge Skills and Abilities, Key Responsibilities:

Knowledge, Skills and Abilities

• In depth Market Knowledge
• Trading Acumen: Proven experience in trading FFAs with a strong track record of profitability and risk management.
• Analytical Skills: Ability to analyze complex data, interpret market signals, and make informed trading decisions.
• Technical Proficiency: Proficient in trading platforms, financial modeling, and data analysis tools (e.g., Excel, Python, R).
• Communication Skills: Excellent verbal and written communication skills to articulate trading strategies and market insights to stakeholders.
• Negotiation Skills: Strong negotiation skills to secure favorable terms and build relationships with brokers and counterparties.
• Risk Management: Knowledge of risk management principles and techniques to manage market, credit, and operational risks effectively.
• Problem-Solving: Ability to think critically and solve problems under pressure in a fast-paced trading environment.

Qualifications:

• Bachelor’s degree in Finance, Economics, Business, or a related field.
• Minimum of 5 years of experience in trading metals, freight, and options within the commodities market.
• Chartered Financial Analyst (CFA) Charterholder preferred.
• Proficiency in machine learning and Python, with demonstrated experience in developing and backtesting trading strategies.
• Experience in trading in Chinese markets (Dalian and SHFE) and volatility trading and analysis.
• Strong track record of generating significant revenues and developing innovative trading strategies.
• Professional certifications such as CAIA or Society of Technical Analysts Diploma Part II are a plus.

Key Responsibilities

• Trade Execution: Execute FFA trades in line with the firm’s trading strategy and risk management policies.
• Market Analysis: Continuously monitor and analyze market trends, news, and economic indicators to identify trading opportunities.
• Strategy Development: Develop and implement trading strategies to capitalize on market movements and achieve profit targets.
• Risk Management: Monitor and manage exposure to ensure compliance with the firm’s risk limits and mitigate potential losses.
• Reporting: Prepare and present regular reports on trading performance, market outlook, and risk exposure to senior management.
• Collaboration: Work closely with other departments, such as research, risk, and operations, to support trading activities and ensure smooth execution.
• Relationship Management: Build and maintain relationships with brokers, counterparties, and other market participants to enhance trading opportunities.
• Regulatory Compliance: Ensure all trading activities comply with relevant regulations and internal policies.

Competencies

• Strategic Thinking: Ability to develop and implement long-term trading strategies aligned with market conditions and firm objectives.
• Decision Making: Strong decision-making skills under uncertainty and time pressure.
• Attention to Detail: High level of attention to detail to ensure accuracy in trade execution and reporting.
• Adaptability: Ability to adapt to changing market conditions and adjust trading strategies accordingly.
• Teamwork: Collaborative mindset to work effectively with colleagues across various departments.

Integrity: High ethical standards and integrity in all trading activities and interactions.

Key Relationships and Department Overview:

• NF Charterers
• Head of Dry Freight Trading
• Head of Deals Desk
• Head of Operations
• Heads of Finance departments
• Analytics department
• External counterparties

• Trade Execution: Execute FFA trades in line with the firm’s trading strategy and risk management policies.
• Market Analysis: Continuously monitor and analyze market trends, news, and economic indicators to identify trading opportunities.
• Strategy Development: Develop and implement trading strategies to capitalize on market movements and achieve profit targets.
• Risk Management: Monitor and manage exposure to ensure compliance with the firm’s risk limits and mitigate potential losses.
• Reporting: Prepare and present regular reports on trading performance, market outlook, and risk exposure to senior management.
• Collaboration: Work closely with other departments, such as research, risk, and operations, to support trading activities and ensure smooth execution.
• Relationship Management: Build and maintain relationships with brokers, counterparties, and other market participants to enhance trading opportunities.
• Regulatory Compliance: Ensure all trading activities comply with relevant regulations and internal policies