Major trader of physical energy complex (gas, oil, coal, lng, emissions, etc) needs to expand its Quant Risk team due to widening trading scope. PhD or strongly mathematical postgrad degree; 1 or more years' relevant experience. LNG exposure viewed favourably.

 Purpose: - 

• Establish application of industry best practice valuation methodologies for complex structured products 

• Validate and review complex trading strategies 

• Advise trading and structured products groups on risk of complex trading strategies

Dimensions: -

The main purpose of the trading and operations group is to risk manage a supply and demand portfolio in Europe and the US. The European portfolio is over 60 billion cubic metres (Bcm) per year, equivalent to approximately 14% of natural gas consumption in the EU.

These large volumes have resulted in the trading of structured products with larger and more complex risk structures. 

• Analysis of trading activity, mainly gas but can include other commodity products including power and oil products 

• Analysis of 3rd party supply contracts and sales agreements including any embedded optionality 

• Analysis of current and future storage and tolling agreements 

• Valuation and approval of complex structured deals including cross commodity products and cross geographical markets

Tasks: - 

1. Valuation of the trading portfolio (including Physical, Futures, SWAPS, Options and Storage positions) using regularly updated “mark-to-market” values. This will include an in-depth investigation & analysis of Option valuation methodologies.                                                                              
2.  Analysis of Value at Risk (VAR) and Exposure reports to monitor the trading group's pricing performance and volume/credit position relative to trading mandates and policies. Also includes development of new VAR methodologies and systems, as the business changes over time, to ensure that trading risk measurement is accurate and relevant.         
3. Regular update of projected flexibility utilization by  customers including provision of advice on utilizing purchased flexibility to manage that position
4. The creation of ad hoc reports as and when necessary, to verify the risk and results of certain business strategies, and to advise of the potential risk factors when entering into new business, and new business areas including cross commodity products
5. Liaise with and assist Structuring and Trading on the validation of reports and valuation methodologies, on an ongoing basis, including implementation of trading, portfolio optimization and flexibility systems and models.
6. Provide any other analysis or evaluation as directed by the Quantitative Analysis Manager.

Job Contacts:

• Trading - constant communication to ensure accurate and timely reporting of trading activity, as well as advising on 3rd party trading activities required. 

• Sales and Marketing - daily contact to advise on 3rd party marketing and contract performance 

• Structured Trading – regular contact to validate models and comment on deal negotiations 

• Economic Analysis – assist and advise on ongoing projects involving valuation techniques from a Risk prospective. This team is based in Stavanger. Some business travel required 

• Market Analysis – regular contact  with short term Market Analysis team 

• Corporate Risk – assist, advise and ensure a consistent approach on Risk related issues 

• US Risk Department – assist and advise on risk related issues mainly in the US Gas markets

Requirements:- 

• Experience working in a trading environment within the UK Gas industry.  1-2yrs acceptable for junior applicants.

• Strongly technical post-graduate degree in a numerical or financial discipline: PhD, MSc Maths, MElecEng, etc.

• In-depth knowledge of commodities/derivatives trading instruments (futures, swaps, options, swing contracts, storage, LNG arbitrage) and standard valuation techniques. 

• Knowledge of market analytical techniques 

• Model validation experience 

• Working knowledge of implementing Value at Risk methodologies and Scenario & Stress testing; 

• Highly oriented to systems and quantitative working; System Implementation experience an advantage 

• Highly analytical and able to see the global setting as well as have the interest to investigate the details behind; 

• Have proven ability to produce results and proactively deliver, given little direction supervision by manager; 

• Strong interpersonal skills for communication internally and externally; team player essential 

• Must be able to negotiate, influence and communicate with other departments within the organization. 

• Ability to present complex quantitative ideas clearly and concisely; Presentation skills is essential 

• Programming skills ; Excel, VBA essential;  C++ , Mathematica an advantage