EDF Trading

Hey Everybody,

Just wanted to know how good EDF Trading in the UK is and esp what their graduate scheme is like:

  • What is its reputation compared to competitors Glencore, BP?
  • What are the exit opps like?
  • How easy is it to move to BB/HF later in the future if you start on their trading grad scheme?
  • Any opinions on their desks?
 

I'm no expert, but I did some research when applying in the space. They seem to be a strong power (and nat gas?) Group. If exits to HF are your concern, a place like BP might be better. But if your goal is to be a phy power trader in EU,i think it's a good place. But you also have to keep in mind the goal of these physical grad schemes is to become a physical trader, not go to a bank or HF. If your goal is to go to a BB why not try straight away? 

 

I'm really early in my career too  (in a dev program at a BP/Shell/P66) so I'm not an expert. But, it is pretty common to go from a physical shop to HF/BB (Citadel recruits pretty heavily from BP I am told). Physical trading to BB happens but personally makes less sense to me since the real salary difference is at the junior level (BB pays more) but phy traders guys/gals can make a lot more than at a bank. If your goal is to end up at a bank, I would try for Citi's commodity program (not sure if they have one in EU) 

 

It's a power/gas shop.  I was unaware they had any sort of graduate training program, speed read of the program is basically standard.  Though I would note there is quite a large spread between these types of programs at different shops. 

  • I can't speak to their reputation in European Power/Gas; I'm a NA guy.
  • The only "exit opp" for someone in trading or origination is bigger risk limits at a different shop
  • This is a different type of trading than what most kids think of when they think of banks/HFs.  If you want to trade at bank or HF, go apply to a bank or HF.  This is a physical shop.  Taking physical risk is not what banks/HFs do; they take financial risk--generalizing here.
 
Most Helpful

I worked at EDF Trading for a couple of years as a quant. The graduate program is pretty recent and in the past couple of years only had a small intake. In my last year before I left, there were two grads and both have ended up with junior trading roles. One is a junior flow trader on european power and the other one has joined a gas trading desk. Overall it sounds like it's a pretty good deal, you get to rotate among various teams for two years and see different parts of the business. It would be a lot harder to get straight into a junior trading role coming as an outsider to the company. Trading desks tend to hire people with some experience.

I've had a great time at EDFT, it is a pretty decent company. Work/Life balance was good but I was on the quant side so not managing any market positions. Traders do have to start early (c. 7am in the morning). Management has become a bit more brutal the past couple of years and underperforming traders are kicked out pretty quickly.

It is huge on European gas and power physical markets. They've also built a substantial joint venture on LNG/Coal with a japanese company that sits next to the EDFT trading teams so you do get to see part of those markets as well. Don't expect to trade oil there or only if it generates exposure on a derivative position. It is also a major player in energy derivatives (financial and physical) and few other trading houses will have their level of sophistication when it comes to trading complex derivatives structures. In my experience, pricing systems from EDFT are unrivalled in other commodity trading houses (except perhaps BP). The company has had very good years recently and overall there is generally a nice atmosphere.

Most of the business is physical trading though so while it's a great position to start in the industry, it is completely different from what you'd do in a HF or an Investment Bank. Some do move to HF that have a commodity business (such as Citadel/Millennium) but the truth about exit options is that, apart from commodity trading houses, there aren't many banks trading commodities anymore. So I'd say don't see this as a jumping board to HF/Banks but more as an excellent and relaxed first place to get to know the industry.

The major downside is that pay is pretty mediocre compared to the rest of the industry. Senior traders do get paid a lot but, again, nowhere near as much as what you'd get at Vitol, Trafigura or Citadel.

Any questions, feel free to ask.

 

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