Just to warn you in advance: You are about to read an article from a college kid who wasn’t able to secure a front office role although having relevant finance- related experience.
But what do you do after getting rejected from pretty much every job you applied to while the world seems to come to an end as a result of the collapse of several investment banks in 2008 and 2009? Let me tell you: You watch the devil rise and break through the concrete of Wall Street in order to take you to a middle office/back office gig in operations.
You are actually closing a deal with the devil that neither brings you relevant work experience nor other benefits. Right? No! Actually you get various chances to exploit your “miserable” situation. First, be humble and realize the fact that you got a job and show that to your colleagues and boss. I know it makes you feel horrible and inferior but you have to fight your way through somehow while keeping you dignity.
Show them you are not inferior to them only because you work in a cost center and actually don’t generate revenues for the bank. Let them know you are there for a reason and don’t freak out when someone calls you out or treats you worse than his own wife.
Take some advice from a former victim: I worked in operations at a large European bank and cleared exchange traded derivatives and otc contracts. Wow sounds great, doesn’t it? Please keep in mind that I cleared them, not traded them. Have you ever wondered what happens after a trade is executed?
After the trader clicks on the buy/sell button, the trade immediately pops up in the settlement system. The young and hungry monkeys in the settlement/operating departments reconcile, allocate, confirm and book trades. Additionally they average prices, calculate premiums and margins and make payments to the exchange or business partners if necessary.
As soon as you have stopped crying about your wasted talent you should get enough technical knowledge in order to keep up with the traders! You should know the specific products and markets that are covered by each trading desk. Symex, Eurex, Comex, CBOT, NYMEX, TSE, EDX, ICE, HKE, SAFEX, IDEM, LIFFE. You should know them all! At least you can use your fancy modeling skills here to make a spread sheet.
Final take away: Try to learn as much as you can and then try to improve. I know I sound a bit like a lifestyle guru but the most important thing is to keep you dignity and self-esteem. Accept and don’t reject your job! Then try to find a way out. There are actually several ways to break out of operations…to be continued.
ops roles are different buy side/sell side. On the buy side, ive seen kids start off in ops (at start up funds), work a couple years, and transition to traders assistant/jr trader.
Although it seems to be very rare that people move from operations to trading it is feasible. I only saw that once though (on the sell side). It also depends on the trading desk. Obviously it is easier to move to sales trading as compared to prop trading. But is it really worth the trouble waiting a couple of years for a promotion that may not happen at all?
I used to be in an ops role back in the day. OP is correct with the advice that it needs to be treated as a learning opportunity if this is where you start off. Make the best of it, and formulate a detailed plan of how to get to where you want to be, it will work out (most of the time).
Transition from Ops to Front office is a combination of several things. One of the most important determinants is 'have you acquired the required skills' to apply for a front office job. There are ways to secure an interview with a trading desk through networking / contacts, however you have to be on top of your game to get the attention of the hiring person and then make an impression to be hired.
Side note, that im assuming most people know, but should be reiterated is; there's a structural change going on in the industry, where traders from banks are now going over to the buy side making that all coveted hedge fund trader spot that much harder to get, you now need to compete with computers as well as bank traders.....
@Nissan_GTR. That is definitely a question you will get asked when you try to move from BO to FO. During my time in the BO I definitely learned to work under pressure and to prioritize my work load. As I mentioned in the article, you also need to know the products, markets and strategies the specific trading desk is covering. So it is a combination of both soft and hard skills you need to acquire during your time in operations. @jrtr8der: I agree on that. But the trend towards algorithmic trading also brings new opportunities, especially to BO staff. One of my friends actually god an interview for a “trade monitoring” position at a little quant shop where you review and monitor the trades made by the machine and make adjustments if necessary. Well…doesn’t sound very exciting to me but could be another way out of operations in the future…
corpape....i agree with you, even saying computers are the wave of the future is 5 steps behind....but thats not really trading then is it? the good ol' days are done....Check out this WSJ piece on MS........
"The New York company is hiring programmers and technology specialists to help it trade bonds electronically and handle client orders in the hope of exploiting an expected shift in the way bonds and other fixed income products are traded." quote from WSJ artice, "Now, It Is Man vs. Machine As Morgan Stanley Beefs Up Bond Business, Firm Is Bringing in More Computers" By AARON LUCCHETTI And BRETT PHILBIN Updated August 9, 2012, 3:28 p.m. ET
I should actually write a blog about algo/high freq trading..
I should actually write a blog about algo/high freq trading..
The transition has a lot to do with mindset. Not everyone hates OPS, but for the one's that do, it is important to really persevere during their transition. Know why you want to transition from BO to MO or FO. What's your story? Are you just doing it for prestige, or because you are actually interested in FO/MO work? There's a lot to consider and even more to do i.e.- networking, improving grades, self-studying, interview prep, networking, networking...
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