Insights

Market Overviews

OPERATIONS MARKET COMMENTARY, Q3 2016

• Article by BRUIN Financial

OPERATIONS MARKET COMMENTARY, Q3 2016

MARKET OVERVIEW

This quarter has been largely overshadowed by Brexit and the implications for the Financial Services industry in London, although over the Summer months we usually see job flow and processes slow down.

In this market we have seen that candidates are less willing to move from a secure job. They need to know that the opportunity they are moving to is the right move, exactly what they are looking for and are demanding higher salaries to take the risk in moving.

In the banks we have seen more senior roles being filled internally while they look to hire externally at a more junior level. We have also seen banks have been hiring on the contract side due to the uncertainty.

Other factors such as regulation have also had an effect on the recruitment market over the quarter. With firms looking to prepare for MIFID 2 we have seen them move permanent staff into regulatory projects while back filling these line roles with contractors.

The message from our clients has been clear that although Brexit will create a lot of uncertainty, we will not know what this change will look like for at least a couple of years and it is business as normal. In September we saw the market pick up and job flow increase, as expected.

Role Profiles

As has been the case over the last few years high calibre candidates with good regulatory knowledge have been in high demand. We have seen a number of regulatory reporting roles over the quarter.

Data is also an area in which we have seen a lot of activity; we have seen firms hiring on the reference data side and some market data roles too. This is due to increased regulation meaning Banks and Asset Managers have been looking to increase their headcount in this area.

Corporate Actions has also been a busy area over the quarter on both the temporary and permanent side. Citibank have been migrating their Corporate Actions function to Dublin and have hired regularly on the contract side to help with the migration. While plenty of candidates have been looking in this area, it is still harder to find high calibre candidates from the Broker Dealer side.

Predictions

Brexit will still cause some uncertainty over the next quarter, but with Article 50 not being triggered until at least March/April next year we shouldn’t see any change and we are unlikely to be any clearer as to what that change will look like. As a result we expect that Banks and Asset Managers continue with business as normal and will carry on with their hiring plans.

Over the coming quarter we will see more hires due to increased regulation and MIFID 2 coming in, this will see hires on both the contract and permanent side. Areas where we are likely to see more roles come through are the regulatory reporting space, data area and recovery resolution planning. We are also likely to see more hires in the Collateral Management and Corporate Actions.

The recruitment market will be buoyant over the next quarter with Banks and Asset Managers looking to recruit key hires before December and the market slowing down over the festive period.