Boutique prop trading firm?

Question

Currently working at a FICC desk in a BB. I have been interviewing with a boutique prop shop (around 50 employees), that doesn’t specialize in my markets.

I thought they wanted to hire me to trade their markets, but what they want is someone to set up a desk that trades what I have been trading at the BB.

I would have to set it up from scratch. Their expertise in this is very limited.

OOM · Accepted Answer

Sounds like an exciting opportunity. Some things to consider:

How is your performance in your current role? How much of that performance would you be able to maintain without all the infrastructure or connections in your current seat? Are there a lot of internal models and software you currently rely on, or can you get it done with just a Bloomberg and Excel?

I'm unfamiliar with FICC, but I work as a MM in options for a prop firm, and so much of the edge comes rooted in the broker network my firm has established, and the tech hurdle to get even remotely competitive is massive.

gjk · Answer

Have worked at firms similar to this and in sell side S&T. It's hard to give you specific advice cause how stuff works is VERY product specific. What I can say is that working at a bank a lot of complexity (especially in FICC) is abstracted away for you as a trader. You don't have to worry about funding positions or settlement or building pricing models. Or dealing with sales and the flow they bring in on certain desks.

The upside can be higher for you as a trader at prop shops. And generally there's less political bullshit.

berrycandy · Answer

I don't think you are judging it fairly, but all i am here for is to get feedback. Initially, BBs are not as stable as they were a few years ago. FICC S&T units are down, bonuses have been shit (1x base at best) and the hours are heavy.

fdhksjaivr · Answer

Never join a 50 people prop firm to set up a new desk with discretionary bonuses. You will get fucked. You either get a cut with a formula from your desk result or nothing.

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Boutique prop trading firm?

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