What Role Does an ‘Options Structurer’ Play in the RFQ Process for Complex Derivatives?
An options structurer, typically working for an investment bank or market maker, designs and tailors complex, non-standardized derivatives to meet a client's specific risk or investment objective. In the RFQ process, the structurer is responsible for understanding the client's needs, modeling the complex option's payoff, determining the appropriate pricing and hedging strategy, and then submitting the quote.
They bridge the gap between client requirements and market pricing.