BB trading
(Orangutan, 256
Points)
on 12/18/12 at 6:02pm
From what I've read being a "trader" in S&T just means that you have clients and you execute trades for them. Are there traders in BBs S&T that come up with their own ideas and execute trades on there own? Does prop trading still exist in BBs post crisis?
ur way off --- theres
ur way off --- theres phenomenal traders in fixed income--- the difference is they' re looking in a relatively short time horizon (say a few days, few weeks, a maybe a few months)--- S+T doesnt make as much money as it does just collecting bid/offer (especially given the illiquidity of the markets)
IVY for Life
Executing trades for a client
Executing trades for a client is called agency trading, and is almost exclusively restricted to equity sales-traders, who make up a very small percentage of traders at an investment bank. Most traders are flow traders, which means that a client will ask for the price of an asset, and if they want to trade the trader takes the other side of a client's trade.
There is plenty of prop trading at BBs - there just won't be as many prop desks. A sellside trader still makes prop trades fairly often.
gammaovertheta: Executing
Executing trades for a client is called agency trading, and is almost exclusively restricted to equity sales-traders, who make up a very small percentage of traders at an investment bank. Most traders are flow traders, which means that a client will ask for the price of an asset, and if they want to trade the trader takes the other side of a client's trade.
There is plenty of prop trading at BBs - there just won't be as many prop desks. A sellside trader still makes prop trades fairly often.
I thought the Volcker Rule banned prop trading in BBs?
"The way to make money is to buy when blood is running in the streets."
-John D. Rockefeller
carlfox: gammaovertheta: Ex
Executing trades for a client is called agency trading, and is almost exclusively restricted to equity sales-traders, who make up a very small percentage of traders at an investment bank. Most traders are flow traders, which means that a client will ask for the price of an asset, and if they want to trade the trader takes the other side of a client's trade.
There is plenty of prop trading at BBs - there just won't be as many prop desks. A sellside trader still makes prop trades fairly often.
I thought the Volcker Rule banned prop trading in BBs?
Which meant that entire desks that traded with proprietary intent needed to be disbanded. Traders on flow desks still maintain proprietary positions, either as a means of providing liquidity to clients in certain illiquid securities or for pure proprietary interest.
A lot of people do certain things to add days to their life. I do things to add life to my days.
APAE: carlfox: gammaovert
Executing trades for a client is called agency trading, and is almost exclusively restricted to equity sales-traders, who make up a very small percentage of traders at an investment bank. Most traders are flow traders, which means that a client will ask for the price of an asset, and if they want to trade the trader takes the other side of a client's trade.
There is plenty of prop trading at BBs - there just won't be as many prop desks. A sellside trader still makes prop trades fairly often.
I thought the Volcker Rule banned prop trading in BBs?
Which meant that entire desks that traded with proprietary intent needed to be disbanded. Traders on flow desks still maintain proprietary positions, either as a means of providing liquidity to clients in certain illiquid securities or for pure proprietary interest.
This is an important distinction that many people do nor understand. As you mention, prop trading on the sell-side is very important for many illiquid products, essentially because in illiquid markets desks need inventory to make markets, and they will (obviously) prefer to hold inventory that they think will be profitable to begin with. This is why it is hard to define and regulate prop trading, because if you focus on the desk's desire for profitable inventory, then it sounds very proprietary; however, if you focus on the client anticipation aspect of holding inventory in illiquid markets, it sounds like normal market making.