Immature pissing match between two BSDs..innocent bystander
I am a common visitor to this website. I am using a different account to post this because this topic requires absolute anonymity and I am worried about any consequences if I am identified.
In short, I work for an equity derivative structuring desk at a BB in Asia, which prices and structures primarily for the equity derivative sales desk here.
This is how things usually work. Salespeople get clients requests (order size, underlyings, goal of using derivative) and we structure and price the closest thing to it. Then salespeople would tell clients the prices/structure etc and the clients would sometimes counter the prices they would trade at, and we would try out best to match it. We also have the right to pass on requests that we don't think are worth the risks (illiquid, volatile, gap risk etc).
Recently one of the BSD salesperson stepped on the toe of the head of EQDeriv structuring (don't know the story). Now on the order of the head of EQD structuring, we have entered into a completely stupid pissing match with the sales team.
Basically any orders that come in, we would either use a dumb excuse to pass, or price it 200 bps above fair value. This really ties the salespeople's hand in two ways: 1) stop them from earning any sales credit and also 2) make them piss off their clients by consistently overpricing all trades. The idea is that this effective halt any trades from going through, which hurts the sales team a lot more than us and that they would eventually cave in (salespeople are evaluated based on their sales credit while we are evaluated based on PNL, no trade would simply mean a flat PNL).
The EQD head already said that this would not stop until the salesperson apologize to him in front of both teams and the BSD salesperson is one of the biggest ego maniacs (so obviously, the public apology will never happen and we are seeing no end to this drama).
Us underlings on both team are worried that if this were to continue, it would start eating into the both team's annual performance and we might see the effect in our bonus. Or worse, we will start losing clients and market share and be made redundant and laid off. Is this possible? Should I be worried?
Additional info:
1) This has been happening for a whole week.
2) To give an idea how bad things have become: I used to go home at 9pm on average. For the past week the team has been leaving at around 6pm sharp because there's nothing else to price
3) Rumor has it that people from higher in the hierarchy has tried to step in, but both aren't stepping down. They are both somewhat irreplaceble. The salesperson in question is responsible for almost 40% of the sales desk's sales credit last year, while the head of EQD structuring is the go-to guy for all complex/long tenor structures (which is where creativity is really valued and where the money is at)...so they both can tell people above them to STFU
Ok
This is crazy. I'm surprised no one has stepped in, whatever happened to professionalism ?
Also, you need to find out the story of how exactly he stepped on the EQD Head's toes
My advice is to keep low and get out of the fucking way. I'd also make it clear that your boss' actions don't reflect you and that he gave the marching orders if the sales people start to ask about your position.
At the end of the day, either the Salesperson takes his book and leaves (or his book gets divided up between the sales team) or he admits wrong doing. The head of EQDS can be replaced, but it's not as easy to do so as with a salesperson. This won't play out well for either of them since their pissing match will start to affect the company's bottom line.
lol i do want to keep my job :D
Enjoy getting out at 6pm!
Watch and see. It will be a great learning experience and well worth it
I feel for the op on this one, just another example of the backwards bumfuck bullshit that we're forced to put up with everyday.
Keep your head down and stay farrrr away from all of it,
Forge a letter to EQD from the Sales BSD saying he wants to apologize formally, but not in front of people, which seems like a fair compromise. The letter should mention that no one is ever to speak of this again, and that he will act as if nothing happened.
Forge two, send one to each.
If you can get your hands on some of the e-mails potentially exchanged/to be exchanged between the two BSD's send it over to dealbreaker and we've got ourselves a real story.
Next time they're in each other's face, roll a beer bottle between them from the other side of the room. Their exchange will become a physical fight for the beer, which will quickly reveal the weakling between the two, giving the higher-ups comfort in letting one go.
Did the Sales BSD step of the Head of EQDeriv's toes literally or figuratively?
Not to sound cheesy but this sounds like an unmatched learning experience on how to deal with people on the trading floor. Observe the actions and consequences. Lay low.
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