Central Risk Book - Terrible Desk

Not sure if you read news from Bloomberg.Deutsche Bank Said to Lose Money on Risk-Management Trades U.S. equity central risk book said hurt by algo performance Book size once topped $2 billion; trader moved to other rol None of bank’s central risk book make money and it will never. It is a desk internal traders and client dump all their toxic flow. It is true some bank’s central risk book receive commission. But declining commission is not enough to compensate p&l loss. The job itself is boring. It is essentially and IT and risk job. Even worse, systematic trading model need to pass rigorous model validation. But lots of good trading strategies are not statistical significant. Even if it does, by the time model validation finished, the trading signal is no longer valid. Because it doesn’t money. It is hard to justify its value. Since it doesn’t create revenue, it’s really just a cost center. No matter how good perform in your job, you won’t get rewarded as traders in other desk because of your team performance. Upside of this job is little. In my opinion, central risk book is the worst front office job.

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