Director Market Surveillance recruitment

Director, Market Surveillance Research – Physical Energy
New York

*This position is designed as a high level individual contributor role requiring substantive energy market expertise

Position Purpose: The Physical Energy Subject Matter Expert is primarily responsible for applying highly specialized knowledge and expertise in the physical and derivative energy markets to support the department’s surveillance of market activity to detect and address potential manipulative or other disruptive market conduct. He/She will analyze macro and micro factors affecting energy prices and will monitor information related to, for example, deliverable supply, product movement, scheduling, delivery performance, price relationships and market activity. He/She will work closely with analysts on a daily basis in the context of contract surveillance, provide expert assistance in the context of investigations and review of hedge exemptions, consult with physical market traders to obtain market color, and interface with the Product and Research teams related to regulatory issues around product maintenance and new product introductions. This Physical Energy SME will also keep senior Market Regulation Department management apprised of significant issues in the energy markets.

Principal Accountabilities:
• Mentor and train staff to develop deeper and broader market knowledge and functional expertise with respect to CME Group’s portfolio of energy products, as well as the physical market and other derivative energy markets.
• Closely monitor market fundamentals and activity in the energy markets, and prepare and share information to support the effective execution of proactive and insightful contract surveillance programs to mitigate threats to market integrity.
• Provide expert assistance in the context of investigations of energy markets, analysis of hedge exemptions and the prosecution of rule violations.
• Interface with Research on regulatory issues involving energy product and new energy products and interface with Clearing on delivery related matters.
• Develop ideas for new or enhanced surveillance procedures, systems and information sources to support high quality surveillance.
• Keep abreast of changes in market and regulatory environments across the energy sector, anticipate potential issues, share information and drive necessary adaptations.

Scope of Supervision: No Direct Reports, but will be responsible for mentoring and educating the broader staff regarding the energy markets.

Experience: Minimum 10 years of experience in trading or analyzing energy markets and a deep understanding of the physical markets in one or more classes of energy products.

Educational Requirements: Bachelor’s degree

Problem Solving:

*Evaluate data and information regarding energy market fundamentals, pricing relationships, and participant positions and activity, to identify and understand anomalies in market dynamics. Determine if anomalies involve potential market misconduct.
*Examine related energy markets and determine how exchange markets might be manipulated to benefit positions or prices in related markets. Generate ideas for improving surveillance capabilities and effectiveness.
*Assist in evaluating deliverable supply for new energy contracts and determining if contracts are readily susceptible to manipulation.
*Identify and analyze information sources to aid in reviewing markets.
*Inform decisions on position accountability actions and hedge exemption applications.
*Develop analytical methodologies and investigative strategies in complex matters to drive effective and efficient investigations.

Decision Making:

*Make decisions regarding design elements of effective contract surveillance in the energy markets and the strategic direction of investigations.
*Make decisions regarding the interpretation of market data and information that warrant initiation of investigative inquiries.
*Make decisions regarding the accuracy of deliverable supply estimates and the susceptibility of new contracts to manipulation.

Organizational Impact of Role:
Leadership: This Director and Energy Subject Matter Expert is expected to be the department expert on the functioning of the physical and derivative energy markets and is expected to develop the knowledge and expertise of others at all levels in the department in these markets. We have a substantially more diverse portfolio of products in the energy space than in any other asset class, and he/she will leverage his/her expertise and insight to influence the strategic approach to contract and trade practice surveillance and investigations in the energy markets. He/She will interface with Research, Products Services, Clearing and with senior level CFTC staff on energy related matters.

Risk: Effective management of regulatory risks and protecting the integrity of exchange contract markets are critical functions inasmuch as regulatory failures may not only subject the company to regulatory exposure, litigation and reputational risk, but also may affect the confidence of market participants and their willingness to utilize exchange product markets. The energy markets are particularly highly scrutinized and the SME’s deep expertise in these markets will aid in promptly identifying and remediating risks.

Efficiency: This role has a material impact on protecting the integrity of exchange energy markets, mitigating regulatory risk, and ensuring compliance with core principles applicable to the exchange’s status as a Designated Contract Market. Market participants value effectively and efficiently regulated markets and this role impacts those value propositions while ensuring an appropriate balance between business and regulatory considerations.