Financial Markets Group Financial Markets Group is involved in by lindash


Financial Markets Group Financial Markets Group is involved in ...

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									Financial Markets Group

Financial Markets Group is involved in four main fields: implementing the Bank's monetary
policy through domestic market operations; conducting the Bank's foreign exchange market
operations; investing the Bank's holdings of domestic and foreign securities; and monitoring
and analysing domestic and overseas financial markets. Financial Markets Group comprises
Domestic Markets Department, International Department and Dealing Support Section.

To be considered for a graduate position in Financial Markets Group you must have a
superior honours or post-graduate degree in economics, commerce and/or finance.

Domestic Markets Department implements the Bank's monetary policy through its
operations in the domestic money and securities markets.

Through these operations, the Bank is able to influence the cost of funds available to financial
markets; in doing so, it influences financial conditions and, ultimately, the overall objectives of
low inflation and sustainable economic growth.

The Department performs four principal functions:

    •   Market Operations undertakes the RBA's daily open market transactions as well as
        transactions in securities markets to manage the Bank's domestic bond portfolio.
    •   Domestic Portfolio and Liquidity Analysis is responsible for forecasting cash flows
        between the Reserve Bank and financial system participants as an input to decisions
        on Market Operations, and conducts analysis of the management of the Bank's
        domestic portfolio and the Commonwealth Government's debt management activities.
    •   Securities Markets analyses trends in securities markets (such as equities and
        corporate bonds) and derivatives markets (such as swaps, futures and options) and
        undertakes research in these areas.
    •   Institutional Markets analyses developments in banking and other institutional
        markets (such as funds management), and undertakes research on issues related to
        the operations of financial intermediaries.

As a graduate in Domestic Markets Department, you will mainly be involved with the analysis
of, and research into, developments in domestic financial markets, particularly their
implications for the Bank's market operations and monetary policy more generally.

                    Kathryn – International Department
                    "At the Bank, there is a common goal of learning as much as you can. You
                    are given numerous opportunities to develop your analytical skills through
                    courses, seminars and the ability to work along side, and rotate to, other
                    sections within the Bank. I found this creates much more of a team
                    environment than most people outside the Bank realise."

                    International Department is responsible for the Bank's operations in the
                    foreign exchange market, management of Australia's international
                    reserves and other external economic policy issues.

The Department is highly market-oriented and participates actively in financial markets in
Australia and abroad. As well as carrying out market operations for foreign exchange dealing
and international investments, the Department provides analytical support for these activities
and for the formulation of exchange rate policy. It is also responsible for matters arising from
Australia's membership of international financial organisations.
The Department consists of five sections:

    •   Market Analysis carries out research into the Australian foreign exchange market
        (as well as its implications for the macroeconomy) and provides input to exchange
        rate policy.
    •   International Finance undertakes work which supports central bank co-operation in
        Asia and the Pacific and Australia's relations with international financial institutions
        such as the Bank for International Settlements and the International Monetary Fund.
    •   Foreign Exchange Dealing carries out the Bank's transactions in foreign exchange
        and provides advice and input on exchange rate policy. It handles foreign exchange
        business for customers, intervention, and the strategy and trading of foreign
        currencies as part of the management of international reserves.
    •   International Reserves is responsible for the investment of Australia's official
        reserve assets, managing those assets with modern portfolio management
        techniques. Operations are conducted through the Head Office in Sydney as well as
        the RBA’s offices in New York and London.
    •   International Financial Markets monitors and analyses developments in
        international economies and financial markets to help formulate strategies for
        investment of international reserves and as an input to the policy process.

As a graduate in International Department you will initially become an analyst or dealer
involved in the operations of one of these sections.

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