Head of Financial Risk Management

The opportunity

• Margin Modeling & Methodology
• Ongoing performance monitoring of initial and variation margin models across cleared products, including futures, options, and swaps.
• Lead periodic recalibration of margin parameters (lookback windows, volatility scaling, anti-procyclicality measures, liquidity add-ons, concentration charges) and document changes in accordance with the DCO’s model governance framework.
• Evaluate and enhance portfolio-based margining methodologies (e.g., SPAN-style, VaR/Expected Shortfall, filtered historical simulation) for accuracy, defensibility, and regulatory compliance.
• Conduct back-testing, sensitivity analysis, and model performance reviews; clearly articulate findings to internal stakeholders, the Risk Committee, and regulators.
• Market Risk & Stress Testing
• Design, execute, and continuously refine the DCO’s stress testing program, including historical, hypothetical, and reverse stress scenarios.
• Monitor market risk exposures of clearing members and the clearinghouse as a whole, including concentration, wrong-way risk, liquidity risk, and tail-risk exposures.
• Assess the adequacy of the default waterfall, guaranty fund sizing, and skin-in-the-game contributions in light of evolving market conditions.
• Produce daily, weekly, and monthly risk reporting to senior management, the Risk Committee, and external regulators.
• Regulatory & Governance
• Ensure ongoing compliance with CFTC Part 39 DCO Core Principles, including those governing financial resources, margin, risk management, default procedures, and system safeguards.
• Serve as a liaison to the CFTC and other regulators during examinations, rule certifications, and ad hoc inquiries.
• Maintain robust model risk management documentation aligned with industry standards and the DCO’s internal governance policies.
• Support the Chief Risk Officer in Risk Committee preparation, member due diligence, and the evaluation of new products and clearing services.
• Clearing Member Oversight
• Conduct financial and operational risk reviews of clearing members, including assessment of capital adequacy, liquidity, and risk management practices.
• Monitor intraday and end-of-day exposures, margin calls, and collateral sufficiency; escalate emerging risks to the CRO and senior leadership.
• Partner with operations and technology to enhance real-time risk monitoring tools and dashboards.

What you bring

• Minimum of 10 years of risk management experience at a CFTC-registered DCO, with direct ownership of margin and/or stress testing methodologies.
• Deep, practical knowledge of CFTC regulations, particularly Part 39 DCO Core Principles, and familiarity with adjacent rules under Parts 1, 22, and 190.
• Demonstrated expertise in market risk concepts: VaR, Expected Shortfall, scenario analysis, volatility modeling, and portfolio risk aggregation across futures and options.
• Foundation in margin model design and validation (SPAN, SPAN 2, historical simulation, parametric, or Monte Carlo-based approaches).
• Hands-on experience designing and executing stress testing programs that meet DCO regulatory expectations (liquidity stress, default management drills).
• Bachelor’s degree required in a quantitative discipline (Finance, Economics, Mathematics, Statistics, Engineering, or related field); advanced degree (Master’s) preferred.
• Excellent written and verbal communication skills, with proven ability to present complex risk concepts to executives, board members, and regulators.
• Sound judgment under pressure, with the ability to make defensible risk decisions in volatile markets.
• Intellectual rigor and attention to detail in model design, validation, and documentation.
• Collaborative orientation across risk, operations, technology, compliance, and legal functions.
• Comfort engaging directly with regulators, clearing members, and senior internal stakeholders.