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.