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The financial crisis of 2008 is often cited as one of the most significant events in our recent economic history. Not only did it impact the American economy as a whole, but it also put substantial pressure on financial institutions to adjust their business practices. As a result, companies throughout the financial services sector have needed to utilize compliance professionals more proactively. While banks have had to endure the subsequent rise in anti-money laundering regulatory initiatives, hedge funds have also needed to regulate their trading procedures to be more compliant with industry standards. As a result, there has been a spike in the need for finance professionals with trade and compliance backgrounds.
Michael Bennett, a Senior Staffing Manager who specializes in Finance and Accounting, has seen the gradual increase in the demand for trade surveillance specialists specifically from hedge fund clients. While this is a trend happening throughout the financial sector, keep reading to learn about the types of opportunities available, what employers are looking for in prospective candidates, and how a recruiter can increase your odds of landing a role.
Insider trading can encompass a variety of asset classes (i.e., equity, stocks, etc.), and as a result, hedge funds are building up their compliance programs to better detect and prevent non-compliant trade activities. As a result, these firms will typically need trade surveillance specialists for a variety of reasons. For example, while one hedge fund may need a trade surveillance specialist to cover for an employee on a leave of absence, another may only need an extra trade specialist to handle a seasonal uptick in workload. This is to say, an opportunity can arise at any point in time.
“Since trading amongst hedge funds can occur after regular stock market trading hours, issues that may require the expertise of a trade surveillance specialist can arise overnight,” says Michael. Therefore, job seekers that are more flexible and open to project-based assignments will have the most success in finding a job in this space. “Once you’ve proven your skills over time, many of these opportunities can transition into a more permanent role.”
If you are interested in pursuing these roles, it’s important to showcase the skills and experience that hiring managers are looking for in candidates. “Since trade surveillance specialists need to be able to hit the ground running quickly, hiring managers typically prefer candidates who have at least 5 to 10 years of relevant trade experience with demonstrated strength on the compliance side at a major firm or regulator,” says Michael. For example, having direct experience working on the equity trading side would be a great asset to highlight.
Additionally, candidates should be able to provide regulatory or compliance advice in connection with specific trading markets (i.e., equity, stocks, etc.). Therefore, if you plan on standing out against competition throughout the interview process, it’s important to stay up-to-date on current regulatory developments, have a firm grasp on key rules and regulations impacting your line of securities, and be able to comfortably articulate the value you can add.
While it can be tempting to start applying to a number of trade surveillance roles, it may prove difficult to find these types of roles on your own. “Since these roles are very time sensitive in nature, most companies won’t publish these positions on job boards,” notes Michael. “Instead, most hedge funds will opt to work with a specialized recruiter who can better supply qualified candidates in the most time-efficient manner,” says Michael.
Overall, trade surveillance roles can be a very promising specialty area to pursue. Not only are these positions typically high paying, but they also present great opportunities for professional development, and will ultimately help you gain a better understanding of two critical areas within the finance industry.
