Market Risk Analyst

About the role

This role focuses on managing market risks for Alpaca, a company providing brokerage infrastructure for various assets. The successful candidate will design and monitor risk limits for new financial products, perform daily analysis using Value-at-Risk and stress testing, and develop forward-looking scenarios to assess market volatility impacts. This work ensures the firm's capital and liquidity positions are robust, especially when introducing novel products.

A key part of this position involves collaborating with Engineering and Product teams to refine the margin engine. This includes stress-testing its capabilities to ensure margin requirements accurately reflect cross-product offsets and tail risks. Additionally, the analyst will contribute to developing the Enterprise Risk Management framework by defining risk appetite statements, maintaining risk registers, and establishing key risk indicators across the organization.

Success in this role means providing real-time insights to senior management through automated risk dashboards and reports built using SQL and Python. The analyst will also act as the risk lead for new product approvals, identifying unique risks associated with event-based outcomes and liquidity fragmentation. This requires the ability to operate in situations where established industry benchmarks may not exist, translating complex quantitative risks into clear, actionable insights.

The salary for this position ranges from $52,000 to $88,000 USD.

Skills that matter here

• Python: Used for data analysis, building risk models, and creating automated risk dashboards and reporting tools.
• SQL: Essential for data analysis, handling large datasets, and developing automated risk dashboards and reports.
• R: An alternative to Python for data analysis and building risk models.
• Derivatives (Futures/Options): Requires a deep understanding to effectively manage market risks and refine margin mechanics.
• Margin mechanics: Crucial for collaborating with engineering teams to ensure margin requirements accurately reflect risks.
• Three Lines of Defense model: Understanding this model is important for contributing to broader risk governance and the Enterprise Risk Management framework.

Who this role suits

• Someone with 2-5 years of experience in market risk, middle office, or quantitative analysis within a fintech, hedge fund, or high-frequency trading environment.
• A person who can comfortably handle large datasets and build their own risk models.
• An individual who can define risk parameters for new products without established industry benchmarks.
• A professional capable of distilling complex quantitative risks into actionable insights for non-technical stakeholders.

From the employer

Market Risk Management

• Design, implement, and monitor risk limits for new products.
• Perform daily monitoring of Value-at-Risk (VaR), stress testing, and sensitivity analysis.

Margin Architecture

• Collaborate with Engineering and Product teams to refine and stress-test our Margin engine, ensuring margin requirements accurately reflect cross-product offsets and tail risks.

ERM Framework Development

• Assist in the design and roll-out of the Enterprise Risk Management framework.
• This includes defining Risk Appetite Statements (RAS), maintaining the Risk Register, and developing Key Risk Indicators (KRIs) that span across the organization.

New Product Approval (NPA)

• Act as the risk lead for the launch of new products, identifying unique risks associated with event-based binary outcomes and liquidity fragmentation.

Stress Testing & Scenario Analysis

• Develop forward-looking scenarios (including "black swan" events) to assess the impact of market volatility on the firm’s capital and liquidity positions.

Cross-Functional Support

• Support the wider Risk team in Operational Risk assessments, internal audits, and regulatory reporting requirements.

Automation & Reporting

• Build automated risk dashboards and reporting tools using SQL/Python to provide real-time insights to the Chief Risk Officer and Senior Management.

Experience

• 2–5 years of experience in Market Risk, Middle Office, or Quantitative Analysis within a fintech, hedge fund, or high-frequency trading environment.

Product Knowledge

• Deep understanding of derivatives (Futures/Options) and margin mechanics.
• Experience with Prediction Markets or event-driven trading is a significant plus.

ERM Familiarity

• A solid understanding of the "Three Lines of Defense" model and a desire to contribute to broader risk governance beyond just market data.

Quantitative Skills

• Proficiency in SQL and Python (or R) for data analysis.
• You should be comfortable handling large datasets and building your own risk models.

Problem Solving

• The ability to operate in a "gray area" defining risk parameters for novel products that may not have established industry benchmarks.

Communication

• Ability to distill complex quantitative risks into actionable insights for non-technical stakeholders and executive leadership.

Education

• A degree in a quantitative field (Finance, Mathematics, Physics, Economics, or Engineering).
• Financial Risk Manager (FRM) or CFA designation is a plus.

How We Take Care of You:

• Competitive Salary & Stock Options
• Health Benefits
• New Hire Home-Office Setup: One-time USD $500
• Monthly Stipend: USD $150 per month via a Brex Card.

Alpaca is proud to be an equal opportunity workplace dedicated to pursuing and hiring a diverse workforce.