What is trader’s head
A trader leader is a Manager of commercial business, responsible for positions, risk and, ultimately, the profitability of the business. In a registered securities firm, the head trader supervises all traders and other personnel within its jurisdiction, and also can do trade. In particular, the chief trader charged with ensuring regulatory and internal controls for each employee that is part of a commercial operation (i.e. not only traders). Trader head may also be referred to as “the trader”.
Breaking The Head Trader
Any trader leader in securities with controlling and/or approval responsibilities must be a registered principal, meaning they must hold all major licenses for securities and to possess one of the following certificates:
- Series 4: Registered options Principal exam (OP)
- Series 9 and 10: the main securities sales Supervisor examination
- Series 23: General Basic exam for securities – Head of sales (SE)
- Series 24: General Basic exam for securities (GP)
- Series 51: Municipal Fund Securities Principal Examination
- Series 53: municipal securities Principal examination (MP)
Accurate required major exams depend on the responsibilities of the head trader. In small firms, there may be only one or two heads of the traders, but in large companies, often, many heads of traders, each responsible for a certain market. Trader head of municipal securities, for example, would, at least, Series 53 license. Various licenses are applicable to futures and commodity markets operations. Was the basic options, for example, to hold a series 4 license.
The Head Trader Job Description
In many environments, such as asset management companies or managers money trader leader may report to the chief investment officer and chief operating officer and will play a key role in the implementation and execution of individual professional requests. The head of traders can also be responsible for creating and maintaining relationships with external brokers and custodians. Trader head should be among the most knowledgeable persons in the firm and architecture/environment. Some specific head trader duties and responsibilities may include:
- Transaction management from start to post-trade analysis, including construction specialties, przetargowa analysis, execution and settlement.
- Enforcement of rules and best execution rules are met.
- Designing trading system, the trading policies and procedures, as well as a broker and a trading account.
- Help the managers of the portfolio reorientation and objectives of asset allocation.
The Head Trader Of The Evolution Of Work
How to quickly change the rules change the day-to-day responsibilities of the head of the traders, their role shifted from active trading and compliance and oversight functions. In Europe, in particular, the mifid II regulations are changing daily priorities of the head traders from trading and market structure and changes to the rules and not keeping abreast of what the markets are doing. Experienced professional in the trade is essential for the formation of the head trader, a role now can afford only a small amount of time actually trading securities.