Most Helpful

I’ll take this one. I work at an MM. we route trades through the firm’s OMS (order management system). This is basically a json interface where you specify execution broker(s) (depends what deals/ set up was done at a firm level, think bank execution/ trading services), algorithm (twap, vwap, broker custom algo (they all market a bunch claiming to add a splash of alpha (they don’t))), and a bunch of other fix like/ mapped tags. Some firms do do some internal crossing before sending the remainder out the door (this can be very nice)

From there the brokers try to match the schedule specified (ie don’t fall too far behind vwap and if so be more aggressive/ cross more), try to target lit market (exchanges) / dark (dark pools) as specified (or left to their discretion), try to have various levels of posting vs taking, etc.

Wrt to impact, that’s a very wide, but extremely important and as a result very studied question. Obviously it depends on size/ liquidity (top quintile liquid names take literally millions and millions to even have temporary impact (vs permanently impact)) and a host of other things. Generally people model it with a power law at the permanent/ temporary impact level. To just put a verrry loose fund size metric on it I’d say for folks trading a decent number of names (3k) in a l/s stat arb style day to week holding period, I wouldn’t even really worry too much about impact until at several hundred MM’s deployed in the us equity market. (Of course if you don’t model it well you could obviously hit impact a lot sooner than that with higher trading of lower liquid names, but assuming good pm skills/ size/trading limits in portfolio construction, that’s roughly where I see it really come in at/ start to be a serious cost to address)

Hope that helps and of course there are many other situations where “impact” occurs, just giving you my experience with it

Voluptas maxime quisquam voluptatum deleniti excepturi necessitatibus. Illum distinctio quia aut quia facere amet.

Career Advancement Opportunities

September 2023 Hedge Fund

  • Point72 98.9%
  • D.E. Shaw 97.9%
  • Magnetar Capital 96.8%
  • Citadel Investment Group 95.8%
  • AQR Capital Management 94.7%

Overall Employee Satisfaction

September 2023 Hedge Fund

  • Magnetar Capital 98.9%
  • D.E. Shaw 97.8%
  • Blackstone Group 96.8%
  • Two Sigma Investments 95.7%
  • Millennium Partners 94.6%

Professional Growth Opportunities

September 2023 Hedge Fund

  • D.E. Shaw 99.0%
  • AQR Capital Management 97.9%
  • Point72 96.9%
  • Magnetar Capital 95.8%
  • Citadel Investment Group 94.8%

Total Avg Compensation

September 2023 Hedge Fund

  • Portfolio Manager (9) $1,648
  • Vice President (22) $464
  • Director/MD (11) $434
  • NA (6) $322
  • 3rd+ Year Associate (24) $287
  • Manager (4) $282
  • Engineer/Quant (67) $273
  • 2nd Year Associate (30) $251
  • 1st Year Associate (73) $190
  • Analysts (222) $178
  • Intern/Summer Associate (21) $134
  • Junior Trader (5) $102
  • Intern/Summer Analyst (243) $85
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”