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Kraken (via parent company Payward) is seeking an experienced Head of Financial Risk Management to lead the risk function at Bitnomial, a CFTC-registered Derivatives Clearing Organization (DCO). This is a senior leadership role responsible for designing, calibrating, and overseeing margin models, stress testing frameworks, and market risk methodologies across a modern financial infrastructure platform.
Key responsibilities include:
**Margin Modeling & Methodology**: Lead the design and ongoing performance monitoring of initial and variation margin models across futures, options, and swaps. Conduct periodic recalibration of margin parameters including lookback windows, volatility scaling, anti-procyclicality measures, liquidity add-ons, and concentration charges. Evaluate and enhance portfolio-based margining methodologies (SPAN, VaR/Expected Shortfall, filtered historical simulation) for accuracy and regulatory compliance. Execute back-testing, sensitivity analysis, and model performance reviews.
**Market Risk & Stress Testing**: Design and refine the DCO's comprehensive stress testing program including historical, hypothetical, and reverse stress scenarios. Monitor market risk exposures of clearing members and the clearinghouse, including concentration, wrong-way risk, liquidity risk, and tail-risk exposures. Assess adequacy of the default waterfall, guaranty fund sizing, and skin-in-the-game contributions. Produce daily, weekly, and monthly risk reporting to senior management, the Risk Committee, and regulators.
**Regulatory & Governance**: Ensure compliance with CFTC Part 39 DCO Core Principles. Serve as liaison to the CFTC and other regulators during examinations and inquiries. Maintain robust model risk management documentation. Support the Chief Risk Officer in Risk Committee preparation and evaluation of new products.
**Clearing Member Oversight**: Conduct financial and operational risk reviews of clearing members. Monitor intraday and end-of-day exposures, margin calls, and collateral sufficiency. Partner with operations and technology to enhance real-time risk monitoring tools.
Required qualifications: Minimum 10+ years of risk management experience at a CFTC-registered DCO with direct ownership of margin and/or stress testing methodologies. Deep knowledge of CFTC regulations (Part 39 and adjacent rules). Expertise in market risk concepts (VaR, Expected Shortfall, scenario analysis, volatility modeling). Foundation in margin model design and validation. Experience designing and executing stress testing programs. Bachelor's degree in quantitative discipline required; Master's preferred. Excellent communication skills and ability to present complex concepts to executives, board members, and regulators. Sound judgment under pressure and intellectual rigor in model design and validation.
Preferred: Prior FCM experience, cleared derivatives across multiple asset classes, knowledge of default management processes, experience supporting regulatory examinations and rule filings.
