Cash Equities in This Day and Age
Hello folks - it has been a while since I've posted on here!
For a myriad of reasons that I don't feel like explaining at the moment, a role in cash equities at a BB in NYC has piqued my interest despite my current role working on a derivatives desk.
More than anything I think that I'm just curious about how this business works; I ignorantly thought that cash equities didn't exist anymore or had been whittled significantly across the street since 08 (down to to one or two traders at any given bank).
So I was surprised to see that this role was available. I've since been trying to learn more about the day to day business of these desks but, all of the posts on here are multiple years old.
Thought I'd hop on here and see if someone could help answer some of the following:
1) What is the highest margin line of business on cash equities desks these days? Is it making markets in illiquid issues? I can't imagine that there are still strong revenue opportunities in making prices for blue chip names now that the buy side has very strong access to a massive range of algorithmic execution strategies to scale into liquid equity exposure and can also obtain exposure through OTC D-1 products.
2) Why do cash equities traders all seem to haveexams (prop trader license) is there some that still exists in this business?
3) Are there corners of the cash equities space that haven't been harmed by prolific automation?
4) Who are seen as the top banks in this space? (Defined as: Biggest VaR, most competitive pricing, biggest revenues, etc.)
5) How do these desks compete with the cash equities/ Market Making shops ( , virtu, , etc.) do they offer some other form of value/edge to those ? I suppose research and market color are important pillars of this business, is that correct?