Is XVA trading still one of the most exciting areas of quant finance to work in? XVA specialists are still valued by the top trading firms in 2023, but the place they’re particularly needed now is Europe.
XVA traders are specialist quant traders who combine counterparty risk and funding risk (while hedging against them) as well as dealing with collateral and capital management. While firms have historically had one London based team to cover the European trading book, Brexit means they now need another team for their European entities too.
JPMorgan is dealing with this. The bank’s XVA trading team in Europe is run out of London by JPMorgan’s managing director and global head of XVA Mark Williams. Williams is currently building a small team in Paris, but it’s easier said than done. One of its associate listings was posted in June and remains unfilled.
Do other US banks have the same problem? Morgan Stanley and Citi both have healthy XVA teams in Paris but are taking slightly different approaches. The former is heavy on senior traders, with multiple executive directors, while Citi has a lot of VPs and even has XVA trading interns. Bank of America also have XVA interns, but their team appears more modest in size.
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