Banks on the lookout for FX salespeople

5 January 2004

2 minute read

After a quiet couple years, FX is back in fashion. Headhunters say bonuses in FX sales should be considerably higher than in 2002.

Simon Head, a principal and head of FX research at Alexander Mann, the recruitment company, said 2003 was a good year for FX sales. 'Bonuses will be going up 25% for good FX salespeople compared to 2002. There is massive demand for them. They are in very short supply.'

Dominie Moss, a consultant at search firm Sheffield Haworth, forecast bonuses in FX sales will be up 20-30% for 2003 compared to 2002: 'A senior sales person in a tier one bank should receive total compensation of 350,000 to 500,000, on a base salary of 100,000 to 110,000. Comparable total compensation at a tier two firm should be 200,000 to 300,000.'

FX salespeople who specialise in sales to fund managers and hedge funds were most in demand during 2003. Head said: 'Asset managers have become a lot more aware of the impact that currencies can have on their investments. They are starting to manage their currency exposure in a much more active way, and banks need people to sell to them.'

However, underinvestment in FX talent means the market for salespeople is competitive. One headhunter said FX desks have suffered during the past few years from the perception that FX was a competitive area with low margins. As a result, he said businesses have taken on few FX trainees, leading to a weak pipeline of new talent. 'There are very few good intermediate people. Seniors are becoming long in the tooth and don't have understanding of cutting edge derivative products.'

HSBC, Barclays Capital and Société Générale, have all added to their FX salesteams during the past five months. Moss forecasts further hiring in the New Year: 'FX and desks have been pretty lean. Now that volumes are up there is more need for salespeople. A lot of line managers are planning to hire in January and February.'

German FX salespeople are likely to be in particular demand according to headhunters. German regulations concerning derivatives products are set to be relaxed in January. Head said this will enable Frankfurt asset managers to trade exotic currency derivatives. He said this has already prompted banks to staff up in 2003, but that further hiring is likely in 2004.