Core Insights - The demand for traders who can profit from commodity market volatility is increasing due to geopolitical tensions and trade wars affecting raw material prices [1][3] - Hedge funds and quantitative trading firms are actively recruiting traders skilled in volatility trading, with notable firms like Eisler Capital and Squarepoint Capital leading the charge [1][3] Group 1: Market Dynamics - Commodity prices have been highly volatile this year, influenced by U.S. tariffs on trade partners and conflicts in the Middle East, particularly between Israel and Iran [1] - A volatility index for commodities surged to its highest level since early 2023, reflecting the ongoing impacts of the Russia-Ukraine conflict [3] Group 2: Recruitment Trends - There is a significant increase in demand for cross-commodity volatility portfolio managers and traders compared to last year, driven by the turbulent market environment [3] - Experienced traders from major firms are transitioning to hedge funds, with notable moves including Greg Bugaj from Gunvor to Eisler Capital and Scott Harbert founding his own hedge fund [3][4] Group 3: Skills and Operations - Volatility traders focus on options to bet on the magnitude of future price fluctuations rather than the direction, relying heavily on pricing models and algorithms [4] - The demand for quantitative researchers with Python programming and machine learning skills has notably increased this year [5] Group 4: Blurring Lines Between Sectors - The distinction between hedge funds and physical trading companies is becoming less clear, as hedge funds like Balyasny Asset Management and Qube Research are entering physical gas trading [5] - Despite advanced trading models, many top oil trading departments reported a decline in second-quarter profits due to geopolitical shocks and unpredictable U.S. trade policies [5]