BCG Report and the top trading shops
http://www.bcg.com/publications/files/Q4_2006_Mar…
I would like to know about the top 5 trading shops. Can we rank Investment Banks based on their trading revenue? How about volume? How many variables are used to determine a top desk? I am thinking that revenue and volume may indicate client satisfaction (not necessary, but definitely an indicator). Of course, word of mouth on the street is another indicator-which in turn is based on the teamâ€s or headâ€s performance.
If a bank is heavily involved in Prop, does it imply better long term career opportunities? I am assuming that the bank is a market leader in dealer trading more like GS, MS versus ML. ML was not in to prop as much as GS, MS, Lehman, DB and JP. I just heard that things are changing in ML. (Just curious and I have nothing to do ML)
Also, is there a cross between prop and dealer trading? I am under the impression that it is possible in fixed income. I have not heard about a cross in equities, but know of few cases in Fixed Income where the dealers take speculative position based on the direction of client orders. I asked one trader if there is a conflict of interest and got the obvious answer: Everything in this bank involves a conflict of interest and we try hard not to get caught! I would like to know more about this cross between prop and dealer trading. As far as I know, the top shops are the following:
GS, DB, Lehman, MS, JP, UBS (not in any order)-correct me if I am wrong
How would you rank these for FX? I am guessing DB, UBS, GS, JP and Citi…..If you guys follow Lee Oliver then you must have read his review on Lehman. According to him, Lehman is the only bank, outside the top 5, which is consistently improving the FX business. Another ranking mentioned MS as the most improved FX shop.
How would you rank these for Commodities? I can only guess GS, MS and JP
How about bonds? The two that come to mind are Lehman and DB with JP coming in third.
In equities, GS, ML and Lehman are the top tier with UBS coming in very close.
How about an overall ranking?
Jimbo, Bband and Skin1-please jump in!
Two comments. First, for commdities, the top shops are Goldman and Morgan Stanley. Then Barclays Capital. Then JPM, DB, and Merrill. Citi and Lehman are both tiny in commodities, but looking to grow very quickly. Second, keep in mind that you can still do a lot of prop even if you're not on a dedicated prop desk. I know of quite a few desks that are not actual prop desks where the traders do primarily prop.
"Second, keep in mind that you can still do a lot of prop even if you're not on a dedicated prop desk. I know of quite a few desks that are not actual prop desks where the traders do primarily prop."
Good point. Even "market making" in exotics has a very strong prop component, b/c the risk is so often one side and you sit with it for so long.
I should have mentioned Barclays.
So you two agree with the FX rankings? and what about bonds?
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