Salary fluctuations and trends in financial services and commodities technology.
Contract rates for Project Management positions within the FST space are remaining at lower than expected rates, £525 - £700 per day, dependent on contract length and skills. This is due to the fact that there continues to be a surplus supply of candidates available on the market as some of the bigger Tier 1 banks continue with large scale redundancy plans. We are seeing, however, an increase in the amount of opportunities available that should bring positive news to the marketplace, especially within the mid to large size asset management businesses.
There is a trend for contractors to be very negotiable on their rates as the competition for contracts increases. This is probably due to either a lot of contractors being “type cast” and doing a number of projects back to back in the same asset class with the same technologies in different clients, or contractors previously being in a long-term project with a client in which they were repeatedly extended. The result is if there is no project of the same type currently in the market place, they have to be negotiable as their CV may not look as strong in other areas.
Overall, perm and contract rates and salaries have increased very slightly for the good, and is testament growth in the market for hiring. A number of the recent headcounts that have been released have been for growth hires. This is very positive as most of 2012 was all about replacement. Trading volumes are up which has had a knock on effect through the ranges of companies we work with. End users firms where most front office trading takes place are either relying on hiring and expanding their front office teams and IT or are putting pressure on their services providers such as vendors and software hours to provide IT staff to support activities. The increase over this quarter has seen perm salaries take a small increase as to contracts whom have seen day rates increase in the development sector. FS Technology firms so far have reported in an average of 60% headcount increase which shows real positivity in the markets.
More and more of the firms that are hiring, outside of the larger organisations, are no longer offering a benefits package alongside the base salary. This can lead to a real dilemma for candidates because they see a real opportunity for growth in their career but without the safety net of a good benefits package. It can become a really difficult choice for candidates, whether they want to take the short term gain of salary plus benefits or take the longer term career view of no benefits now but dramatically improved career prospects.
There has been less focus on junior positions with businesses realigning their projects and requiring a senior individual to join the team. We have also seen changes in teams where replacements are being made, therefore the requirement is to look for individuals that will hit the ground running or get up to speed quickly.
There is a trend at the moment of some companies having the misplaced belief that they can pick up candidates at lower salaries due to the competitive job market. Whilst this is partially true, many companies are missing out on the very best talent because those candidates are in demand and are receiving multiple offers, thus driving up their salaries. We have been asked by a number of clients to offer advice on how to streamline their recruitment processes and how to avoid losing out on the best talent.
Salary ranges in support this month have been fairly consistent with salaries stabilising between £30-£45,000 depending on level and area of business. This mid to low tier hiring level has been busy in the support space as a drive for customer delivery has been a noticeable feature of the vendors.
We have also seen more demand for FIX specialists at the circa £50,000 mark, some of these roles used to be more around the £65,000 mark which would indicate that people were more commonly moving from the end user space, but a lot of our clients will now happily look at candidates coming from the vendor side. This is a good opportunity for clients to bring in talented people at a more affordable price.
Contractors in the FIX space have reported pay reductions. This may be again due to budget cuts and contractors seem to be less worried that their day to day pay has been cut as this is naturally a volatile market and salaries seem to fluctuate monthly.
There have also been high Salaries for Junior Data Analysts. This month it has been apparent that Junior Data Analysts are able to demand much higher salaries than that of other skill sets (e.g. Developers etc.). As a Data Analyst you will typically have a balance of business vs. technical skills making you a very valuable hire.
Perm salaries have remained stable during the first few months of this year. The contract market has slowed slightly and this is largely due to Trading Houses taking time to buy solutions this year hence delayed in projects starting. We expect this to change as we head through the summer months and projects ramp up across Europe.
As can be expected, the salary gap between the Vendors and Consultancies in comparison to the End users has not decreased. There remains a discrepancy between the various sectors. If we look closely at the roles we find the gap between Business analysis and Project Managers closing, with Business analysis with previous energy and previous exposure to trading solution particularly high in demand.
When looking at some of the key growth and demand areas we have identified the following positions are of increasing demand:
Candidates with experience selling ETRM or energy based risk solutions demand a salary of £75,000 to £100,000 + bonus
Candidates experienced in deploying or implementing software solutions within the Energy markets can demand a salary of the value of £65,000 - £80,000
Project Managers who are experienced within trading environment have deployed software solutions within a client/ customer environment can demand a salary of £75,000 to £90,000
Salaries are maintaining a constant level for experienced ETRM candidates however for those getting into ETRM industry will inevitably will face a salary drop due to the very large cost of training new ETRM Consultants and getting them familiar with the system.
HIGH DEMAND SKILLS
The skill sets most in demand in financial services and commodities technology.
There seems to be two areas of particular interest at the moment across the market, Big Data and Client Reporting. A Capgemini report revealed that 9 out of 10 business leaders now viewed data as the fourth factor of production, as valuable as land, labour and capital. Effective use of Big Data saw performance improvements of up to 26% within companies leading to 41% performance improvements over the next 3 years, the same report suggested. Big Data has seen itself thrown to the front of the importance queue primarily due to the new regulatory and compliance requirements on governance and risk reporting along with the need for greater granularity to feed automated trading systems throughout the day. We are hearing a number of large-scale projects could be on the grapevine as clients look to manage all the data within their organisations in a quick and effective manner. Big Data is considered to be the next big thing and candidates with knowledge areas such as Hadoop could possibly see an increase in rates especially if multiple clients start their projects in a short space of time.
Client Reporting is seen as a big growth area due to the fact that information is the driving force behind individual and business decision making. In the aftermath of the financial crisis investors are seeking greater clarity and transparency over their portfolios. This has also been coupled with increased mobility and the need for quick information while on the go, so there is a greater need for online and mobile based applications to deliver information to clients efficiently.
We have seen an increase in MUREX and Calypso based technology and experience. A large Settlements Operation has now released a number or Murex and Calypso roles as they look to ramp up services they offers to large Investment Banks. As previously mentioned trading volumes have increased and so clients and end users are looking to find IT professionals who hold the key experience that can increase trading volumes on Murex, Calypso and Summit. Any technology has real time trading analytics and Trade building tools are hot in the market now as most clients are looking to ramp up Trading volumes. Institutional trading sales and trading must be driven upwards as they look to improve the balance sheets and report profit to now pleased disgruntled share holders as its been too long now since most of your top tier institutions have reported profiles over the last 2 years.
Skills that compliment those typical programming languages such as Java and C# are becoming more important in the market. This includes skills such as Tibco and JMS that allow developers to integrate systems with one another. These skills are in high demand because finding people with an excellent knowledge of them is extremely difficult and they are a rare commodity on the market. It’s not unlikely for someone with excellent Tibco and JMS skills to be snapped up extremely quickly regardless of whether they come from a Java or a C# background.
Murex, is commonly known for being a contractors technology market and the daily rates for this skill is in the region of £700 to £1,000+. There are many large institutions out there trying to follow market trends of hiring perm staff to replace contract costs however on the permanent side there appears to be a drought for highly skilled Murex developers in comparison for the demand.
IaaS, PaaS and SaaS are “as a Service” based technologies, which are supporting the growth of many buy side firms that enable cloud based use of the systems when HFT is not required. Proprietary languages run alongside heroku, EC2 and Force.com. For these end users, the reduced cost from not having to own and run all of their own IT means that they are able to compete, manage and edit their own systems.
There has been a greater requirement for Open source and Cloud based developers. This could be the beginning of a regularly demanded skill as until now it has not been a large requirement in the market but there has been a larger flurry of interest around these exciting developments and more developers will want to join what has classed as another future path for technology.
We have seen a dramatic increase in the need for skilled & experienced pre-sales / technical pre-sales consultants. We can attribute this to an increase in sales / lead generation activity necessitating more pre-sales people to effectively demonstrate solutions in a ‘client relevant’ manner which will clearly show an appreciation & understanding of prospective client needs.
We are seeing a rise in demand for open source technologies within financial services. Clients are becoming very interested in their candidates personal technology projects and any blogs they write or participate in. It’s a clear sign of how technology is becoming more and more important in the financial world – its no-longer secondary to business and therefore the demand is for the technology talent to be thought leaders within their technology field. These technologists in demand are not the developers who are only interested in the 9-5 but instead technologists who read and write blogs at the weekend and build personal systems in the evenings or teach themselves new languages at home. The battle of technology vs business in financial services is moving slowly towards the technologists being increasingly part of strategy, planning and decision making on the wider technical issues.
FIX, once again, is the most prominent technology in the Application Support world. Those without the technology are being overlooked even if they do have significant relevant business knowledge.
This month we have seen an increase in BI and MI requirements. Arguably Business Intelligence and Management Intelligence analysis is one of the most critical aspects to any business. It is however quite often an area that is only invested in after a mistake or a failure. This is a missed opportunity to maximise business success. Many companies are either waking up to this idea or already embracing it thus the demand for BI and MI skills.
A reoccurring theme and one that isn’t likely to go away anytime soon is testing. The top skills this month in automation have been QTP, Selenium and technical testing with strong programming/scripting skills. An automation tester is a key resource to any team looking to automate certain processes and improve efficiency and time scales.
The demand for highly skilled technical candidates with a very strong business understanding is still top of the most wanted list. Candidates who can sit with a trader and understand the functionality they’re looking for and be able to create the technical spec are in the shop window.
We are finding that more clients are seeking exclusive candidates with an energy background. Project Mangers in trading solutions positions who have been exposed to the some areas in the financial sector are an alternative for those showing more flexibility. In regards to the business analysis positions we are finding clients are becoming more and more specific in what commodities or company’s the candidates have been exposed to or have come from. This maybe a direct correlation to, and provide a reason for, the incremental increase in salaries within this position.
We are also continuing to experience a great deal of positivity across the Energy and commodity market in terms of recruitment since the start of 2013. We are seeing a clear battle between End Users, Vendors and consultancies who are each seeking the best talent on the market driving the demand for talented commodity technologists to a new high.
End users are continuing to develop their own in-house ETRM/CTRM systems and are looking to attract developers and technologists on multiple concurrent sites globally, and
Commodity Software Sales Professionals are in great demand with consultancies and Vendors seeking experienced sales and presales candidates. This is very much a global demand with needs across EMEA, the US and Asia.
There is a high demand for candidates that have strong complex modelling experience in Gas and Power. This is arguably due to the high intensity and volume of gas and power trading meaning the risk associated with the trades is far higher and much more volatile. Thus risk analysts must understand the in-depth modelling of forward and back trading curves.
We have noted an increase in the demand for candidates with LNG and Physical power knowledge. There is a key difference between physical LNG & Power and paper trading, in particular the logistics and pipeline involved. Candidates with this knowledge must understand the logistics and preferably the logistics software to go with it.
Across Eastern Europe there has been an increase in the demand for candidates with Agricultural Trading knowledge. This is arguably due to the decrease in regulation allowing trading to increase, but also the weather patterns over the summer of 2012 have increased the supply of soft commodities & agricultural products in Eastern Europe. There will, therefore, be a demand in CTRM systems in this geographical area and in turn a higher demand for candidates with this knowledge.
“Networking” is a word I often see accompanied by a slump of the shoulders, a groan or a roll of the eyes – in both women and men. We know it’s critical to our business and career success, but so often when we think “networking” we think stiff smiles, exposing ourselves to rejection from strangers and time wasted when we could be vegging after a hard days’ work. Because like it or not, when you engage in it intentionally – as an investment in your career, your business and your efforts to change the world – it is work.
However, work doesn’t have to be hard.
Remember how early in your career writing an important email could take you an hour? You struggled to get the language and the tone just right? Now you can bang it out in five minutes, but you had to focus on it to get the skill down. Business networking isn’t quite the same, but it is a business skill that can be learned so that it doesn’t have to take so much energy and so that you can weave it into your work life naturally.
TBricks Taps QuantLINK and QuantFEED for Hosted Trading Service
Hari Sopal's insight:
Trading system TBricks has rolled out a managed, hosted variant of its automated trading software, and has partnered with S&P Capital IQ to provide market connectivity and data. TBricks OnDemand has been rolled out in Stockholm, London, Frankfurt and Chicago
CYPRIOT President Nicos Anastasiades was last night locked in eleventh hour talks with Brussels in a bid to soften a radical plan to impose a tax on Cypriot savings accounts, as part of a deal to fund a €10bn (£8.5bn) EU bailout.
Markets are set to react for the first time this morning, with analysts warning that the hit to depositors could reignite the Eurozone crisis and weaken banks across Southern Europe. The euro dipped more than one per cent against the dollar in trading yesterday afternoon on fears of contagion across the region.
* Debt costs to rise at Italy sale but demand seen firm* Markets seen volatile even if auction goes well* Low-rated sovereigns grab chance to issue bondsBy Marius ZahariaLONDON, March 13 (Reuters) (#sougofollow EURO GOVT-Italian bond yields edge up...
Trafford Council digitises burial and cremation records for online access Funeral Service Times FST · BCMW · Blog · Home · News · Products · Latest Issue · Subscribe · Advertise · Contact Us · Trade Organisations · People · Economy · Events ·...
In an increasingly social media-driven world, becoming a master networker is an important key to building both your personal brand and developing the friendships you’ll need to succeed. However, there are a few areas that need more than digital technology to grow your business. Consider these three tips to help you market faster and more effectively when integrated with your strategy.
The third Financial Services and Commodities Technology Network event at the Ritz is confirmed for Tuesday June 25th at the Ritz Hotel London, bringing together the leading names in the sector to meet, connect and learn from the key note from the inspirational author of SUPERTEAMS, Khoi Tu.
CYPRUS dramatically rejected a crucial bailout last night, throwing the Eurozone back into turmoil and leaving the country’s politicians scrambling for a deal to save the tiny nation from bankruptcy and leaving the euro.
The €17bn (£14.5bn) deal was thrown out because the state could not agree on a new raid on savings accounts, leaving it €6bn short in the plan to recapitalise the country’s broken banks and support state spending until 2020.
It was left to the European Central Bank to offer extra liquidity support to prop up the banks for another few days while a solution is found.
And the state suspended markets and extended its bank holiday yesterday to stop more money flooding out of the struggling banks. There were rumours of impending capital controls last night.
Cyprus’ finance minister flew to Russia to beg for a bailout – they have close economic ties and Moscow loaned the state €2.5bn in 2011.
But Eurozone leaders refused to sanction any bigger bailout from their funds, arguing Cyprus cannot cope if it is given any extra debt.
Sharing your scoops to your social media accounts is a must to distribute your curated content. Not only will it drive traffic and leads through your content, but it will help show your expertise with your followers.
How to integrate my topics' content to my website?
Integrating your curated content to your website or blog will allow you to increase your website visitors’ engagement, boost SEO and acquire new visitors. By redirecting your social media traffic to your website, Scoop.it will also help you generate more qualified traffic and leads from your curation work.
Distributing your curated content through a newsletter is a great way to nurture and engage your email subscribers will developing your traffic and visibility.
Creating engaging newsletters with your curated content is really easy.