The securities markets are known by various names such as capital markets, stock markets, debt markets, foreign exchange markets, etc. Various players in these markets are continuously on the lookout for a pipeline of talent to man various positions.
Thus far, talent has been sourced from a pool of lawyers, chartered accountants, company secretaries and MBAs. While each of these fields has its core knowledge base, many of those emerging from such educational programmes may find that a lot more needs to be learnt or experienced before they get to fully apply their talent to the securities markets.
Job Roles in Securities Markets:
Securities Market knowledge is a blend of Economics, Finance, Quantitative Methods and Law. It leads to careers as Analysts, Dealers, Fund Managers, Risk Managers or Compliance Officers. Career opportunities exist in Brokerages, Rating Agencies, Analytics Firms, Mutual Funds, Banks and Insurance Companies, among others.
Analysts could possess skills in accounting, economics, statistics, mathematics or possess deep domain knowledge of a particular industry (such as infrastructure, telecom, automobiles, metals, chemicals, oil & gas, mining etc). There are securities analysts: those who analyze equity; and there are debt market (fixed income) analysts: those who have a background of mathematics and economics. Statistical analysis is applied in gauging trends and finding patterns to analyze equities, currencies and commodities. Analysis is performed by using simple to complex techniques. When these are combined with the knowledge of computing, it gives rise to the field of analytics. Economists in brokerage firms, mutual funds and rating agencies use their knowledge to analyze macro trends, currency trends, industry trends and rate debt market instruments. Thus, conceptual knowledge, when combined with specific knowledge of the various segments in the securities markets, becomes an extremely powerful talent resource.
Everyone needs to start with the conceptual knowledge of an analyst, before moving into other functions such as Broking, Dealing, Investment Banking and Fund Management. Those with a flair for law may look for careers in Compliance. Risk Management and Treasury require a good base in mathematics, statistics, an understanding of the products, macro-economics, and trading skills. At the highest level, Risk Management techniques are also woven into the Compliance function, making the Compliance function multi-disciplinary in nature. The educational experience needs to have depth and width through simulations, close interaction with industry and live projects