Pay tilts towards OTC documentation

When demand exceeds supply, prices will rise. This is precisely what's happening to pay in the OTC derivatives market.

The latest salary survey from recruiter Robert Walters suggests OTC derivative settlements specialists are commanding plenty more than their less exotic peers.

Heads of OTC settlements departments are able to command around 85k before bonuses, managers are in line for anything from 68k to 85k and supervisors can attain anything from 50k upwards. Bonuses are reputedly in the range of 5% to 30%.

Professionals working with less complex equity and fixed income products earn considerably less. The equivalent levels for generic 'equity and fixed income settlements' professionals are 75k, 55k to 75k and 46k upwards.

"Trading volumes have increased over the past three to four years. And the economic downturn at the start of the decade has meant a lot fewer candidates have been coming through," explains Sally Martin, investment banking operations permanent team manager at Robert Walters.

At the same time, she says OTC products have become increasingly complex and are being tailored to meet client needs. As a result, banks are demanding candidates with the best degrees.

"Since September we have also started to see more banks offering guaranteed bonuses, something that would have been unusual a few years ago," says Martin.

"It's just supply and demand. They are becoming technically more demanding so they are attracting a certain type of individual, someone who can look outside the box," agrees Michele Bloomfield, director of the permanent banking division at recruiter Joslin Rowe Associates.

Average salaries, OTC derivative settlements pros

• Head of department: 85k

• Manager: 68k to 85k

• Supervisor: 50k to 68k

• 3 years' experience: 38k to 50k

• 0-2 years' experience: 30k to 38k

• Senior temporary (3+ years' experience): 26 to 35 per hour

• Junior/clerk temporary (0-2 years' experience): 14 to 25 per hour