Risk Arbitrage Trader, Director

The Risk Arbitrage Trader is a senior-level position responsible for overseeing a dedicated risk/merger arbitrage and event-driven trading book. This role involves managing book risk and capital allocation in coordination with the broader Event-Driven and Global Markets teams. The overall objective of this role is to generate consistent, risk-adjusted revenues by trading announced corporate transactions (mergers, acquisitions, tender offers, spin-offs, and restructurings) while safeguarding the firm's capital. The Risk Arb Trader will coordinate with key internal stakeholders—including Research, Sales, and M&A Advisory—to develop and expand the firm's event-driven trading franchise and deliver superior execution and market insights to institutional clients.

Portfolio Management & Trading Execution Book Management: Actively manage and trade a senior-level Risk Arbitrage book, executing long/short strategies primarily focused on announced M&A transactions, equity stubs, spin-offs, and other corporate reorganizations. Spread Capture: Identify, analyze, and capture arbitrage spreads between target and acquirer securities (stock-for-stock, cash, or mixed-consideration deals) while optimizing execution timing. Hedging & Risk Mitigation: Implement sophisticated hedging strategies using options, credit default swaps, equity derivatives, and index products to isolate deal-specific risks and mitigate market beta, interest rate, and currency exposures. Deal-Break Management: Proactively manage tail-risk and potential deal-break scenarios, establishing disciplined stop-loss limits and exit protocols for high-risk transactions. Research, Analysis & Idea Generation Transaction Analysis: Perform rigorous fundamental, legal, and regulatory analysis of merger agreements, tender offer documents, and proxy statements. Evaluate key deal terms, including Material Adverse Effect (MAE) clauses, termination fees, and financing conditions. Regulatory & Antitrust Assessment: Assess regulatory approval pathways, including Hart-Scott-Rodino (HSR) filings, European Commission reviews, CFIUS clearances, and other global antitrust or national security hurdles. Shareholder Dynamics: Analyze shareholder bases, voting requirements, and activist investor involvement to gauge the probability of deal approval. Collaboration: Partner closely with Event-Driven Research analysts to synthesize legal, regulatory, and financial inputs into actionable trading strategies. Franchise Development & Client Engagement Client Coverage: Build and maintain strong relationships with key institutional clients, including event-driven hedge funds, merger arbitrage funds, and multi-strategy asset managers. Market Intelligence: Anticipate client demand, facilitate large block trades in arbitrage situations, and provide high-touch market color, flow analysis, and spread-pricing insights to the sales force and clients. Cross-Functional Coordination: Coordinate with Sales, Research, Capital Markets, and Investment Banking to enhance the firm's overall event-driven franchise and capture market share in transaction-related flows. Leadership, Governance & Controls Mentorship: Manage, mentor, and develop junior traders and desk analysts, fostering a collaborative and high-performing desk environment. Control Partnership: Work in close partnership with control functions—including Legal, Compliance, Market Risk, Credit Risk, Audit, and Finance—to ensure a robust governance and control infrastructure. Responsible Finance: Build and maintain a culture of responsible finance, good governance, strict expense discipline, and high ethical standards. Reputational Risk Management: Appropriately assess the risk/reward of complex transactions, demonstrating proper consideration for the firm’s reputation, safeguarding Citigroup, its clients, and its assets. Compliance Adherence: Adhere to Citi’s Code of Conduct, the Plan of Supervision for Global Markets, and all