Clarification from the agency

Applications will be accepted from all US Citizens.

As a Risk Analyst (Margin Models) in the Risk Surveillance Branch, you will:

• Draft documents describing margin methodologies used, or proposed, by registered CCPs in both high-level overviews as well as more detailed narratives;
• Evaluate margin models used for a diverse set of derivatives products, including models for futures, options on futures, and over-the-counter (OTC) derivatives such as credit default and interest rate swaps;
• Develop and build prototypes of margin models, or components of margin models, to determine if they appropriately reflect underlying product risk. In addition to these prototypes, analysts would perform statistical analysis such as stochastic process modeling, multi-variate distributions, value-at-risk, expected shortfall, etc., to evaluate the effectiveness of margin models;
• Use financial and statistical software programs such as MATLAB, R, Python and/or SAS to value and stress test futures and OTC derivatives (e.g. rate and credit swaps) at both an instrument and portfolio level;
• Use knowledge of statistical distributions of financial assets, correlation of tail distributions, and valuations based on statistical assumptions in evaluating margin models
• Plan, coordinate, and conduct risk surveillance activities for evaluating market, and other position-related, risk at clearing houses (CCPs) and clearing members (CMs), conduct stress test and back-testing analyses, and identify market participants that pose unusual levels of risk;
• Perform analyses of large trader and clearing member positions and prepare reports on information and data pertaining to the risk posed by specific registrants during times of unusual market volatility, including the adequacy of collected margin;
• Develop historical knowledge of the types of risks facing CCPs, their members, and their clients, and how these have changed through time. This work is applicable throughout the Commission's programs of oversight over CCPs, self-regulatory organizations (SROs) and CMs;
• Lead presentations for DCR senior staff and staff of other Commission offices/divisions regarding margin model issues or innovations. Incumbent is able to answer questions from DCR and other Commission staff and from the public concerning the theoretical and practical aspects of CCP margin models;
• Plan, coordinate, and participate in the regular evaluation of risk management systems and functions of entities such as CCPs and CMs, as well as in non-routine reviews involving complex or unusual issues arising from the financial information and analyses of such entities. Prepare reports of review findings.

Conditions of employment

• U.S. Citizenship
• Background/Security Investigation
• Selective Service Registration is required for males born after 12/31/1959
• May be required to serve a one-year probationary period

Qualifications

CT-14 Level: To qualify for the CT-14 level you must have at least one year of specialized experience equivalent to the next lower grade (GS/CT-13 level).  Specialized experience is defined that through which one has gained experience:

• Applying advanced statistical concepts within the risk management framework including tasks such as stochastic process modeling, multi-variate distributions, value at risk, extreme value theory, GARCH, and EWMA;
• Applying knowledge of derivatives market structure and risks in financial market activities, asset pricing and modeling techniques;
• Utilizing statistical software (SAS, MATLAB, Python, etc.) to perform tasks such as value interest rate swaps and interest rate swap portfolios, value credit default swaps and credit default swap portfolios and mining large databases, analyzing data, and creating data visualizations.

Desirable Experience includes experience gained at a clearing house, bank, member of a clearing house, trading firm, or a regulatory agency with oversight authority over aspects of the financial markets. This experience may have been gained in either the public or private sector.

How you will be evaluated

You will be evaluated for this job based on how well you meet the qualifications above.

Your application will be evaluated and rated under CFTC Category Rating and Selection Procedures. 

Your application will be evaluated based on your responses to the Situational Judgement Test (SJT), which includes a series of Situational Judgement items. These items are designed to simulate the complex regulatory and technical challenges faced by an Auditor. Your responses to the situational items will be used to determine if you meet the minimum qualifications standards at the CT-14 level. If you rate yourself higher than is supported by your application materials, your responses may be adjusted and/or you may be excluded from consideration for this job. Your application will then be placed in one of three categories: Best Qualified, Well Qualified, or Qualified. Names of candidates in any of the quality categories may be sent to the hiring official for employment consideration. Qualified candidates who are eligible for veteran's preference will receive selection priority over non-veteran preference eligibles.

The SJT will evaluate your proficiency in the following competencies:

• Quantitative & Data Analysis
• Technical Competence - Financial Risk Management
• Communication (Oral/Written)

Read Carefully: Each situational question requires you to identify the Most Effective or Least Effective course of action. There is no "partial credit" provided for sub-optimal choices. 

Consistency: Your resume must provide evidence that supports the level of expertise you claim in your questionnaire responses. 

Verification: The CFTC may verify your responses through an interview, a technical exercise, or a reference check. Providing inaccurate information may result in your removal from

Experience refers to paid and unpaid experience, including volunteer work done through National Service programs (e.g., Peace Corps, AmeriCorps) and other organizations (e.g., professional; philanthropic; religious; spiritual; community; student; social). Volunteer work helps build critical competencies, knowledge, and skills and can provide valuable training and experience that translates directly to paid employment. You will receive credit for all qualifying experience, including volunteer experience.

Required Document Details:

You must provide a complete Application Package, which includes:

• Resume showing all relevant and related experience (two pages max). If selected, your resume will be used to determine your initial pay setting decision;
• Cover Letter (optional);
• Performance appraisal (optional);

Veterans Preference: If you are entitled to veteran preference, you should indicate the type of veteran preference you are claiming on your resume. In order to verify your veteran preference entitlement, please submit a copy of your veteran's documentation including a DD-214 (member 4 copy preferred, however, the documentation provided must contain dates and character of service); official statement of service from your command if you are currently on active duty; or other official documentation (e.g., documentation of receipt of a campaign badge or expeditionary medal) that shows your military service was performed under honorable conditions.  In addition, if you are a disabled veteran, a Purple Heart recipient, or widow/widower of a veteran, the spouse of a disabled veteran or the natural mother of a disabled or deceased veteran, you must submit a Standard Form (SF) 15, “Application for 10-Point Veteran Preference,” and the other required documentation identified on the reverse side of the SF-15 to support your preference claim. Although veteran preference points are not assigned under the category rating procedures described under “How You Will Be Evaluated,” veteran preference eligibles are listed ahead of non-veterans within each category for which they are qualified. 

Interagency Career Transition Assistance Program (ICTAP): The ICTAP provides eligible displaced federal competitive service employees with selection priority over other candidates for competitive service vacancies. If your agency has notified you in writing that you are a displaced employee eligible for ICTAP consideration, you may receive selection priority if: 1) this vacancy is within your ICTAP eligibility, 2) you apply under the instructions in this announcement, and 3) you are found well-qualified for this vacancy.  To be well qualified, you must score 85 or better on established ranking criteria. You must provide proof of eligibility with your application to receive selection priority. Additional information about ICTAP eligibility is at:
http://www.opm.gov/ctap/index.asp.ICTAP

Career Transition Assistance Program (CTAP): Provides eligible surplus and displaced competitive service employees in the CFTC with selection priority over other candidates for competitive service vacancies. If CFTC has notified you in writing that you are a surplus or displaced employee eligible for CTAP consideration, you may receive selection priority if: 1) this vacancy is within your CTAP eligibility, 2) you apply under the instructions in this announcement, and 3) you are found well-qualified for this vacancy. To be well qualified, you must rate equivalent to the Well Qualified or better category using established rating criteria. You must provide a copy of your written notification of CTAP eligibility with your application. Additional information about CTAP eligibility is at: http://www.opm.gov/ctap/index.asp.

ICTAP/CTAP Candidates MUST submit:
1. A copy of their agency reduction-in-force notice;
2. A copy of your most recent Performance Rating;
3. A copy of your most recent SF-50 noting current or last position held, the grade level, and the duty location; and
4. A copy of your notice of proposed removal for declining a directed reassignment or transfer of function outside the local
commuting area or documentation showing you were separated as a result of RIF or declining a directed reassignment or
transfer of function outside the local commuting area.

Next steps