Energy trading at top BB - good place to be?

Hi everyone, I'm currently going through the placement process for a S&T SA program at a top BB. I'm really interested in Energy Derivatives desk due to the fact the product is very macro, I vibe'd well with the team and that they are super lean ( lots of associates, few vps) so that could be good for upward mobility. A bonus is that it seems they have a risk taking culture and gives analyst a book within their 1st year.

My only concern is that it's particularly a niche field and I don't know what the impacts of automation are to banks trading oil. 

Any thoughts and insight would be much appreciated.

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“Energy Derivatives desk due to the fact the product is very macro,”

not necessarily. Only crude (and products to a lesser extent) is macro, but what about gas, power, emissions? Not macro

Unlikely they give you a book as a first year, if so it will be very limited, just to get your feet wet. Better than nothing I guess? Not a selling


Seems like your analysis wrt “lean desk” and upwards potential is way off unless you can explain further. The organizational setup u describe (alot of AOs few seniors) is actually the worst for someone in your position. It means you are less likely to be promoted fast (as theres a ton of AOs who arent moving up to VP), abd youre competing against a bunch of people 2-3 yrs older than you to run pnl and have a book. In mkts you need to be able to look at the same thing from many angles. in your shoes i would ask myself: hmmm that is odd, why doesnt this bank promote any if these associates, and why are there so many in the first place? If I spend 2 years there, will the higher ups promote to AO or will they tell me to F off because theres no room to promote and you should be happy to have a trading gig at a “top bb”?


Hard to say, but that doesn’t sound very lean to me...don’t think it’s a huge issue though esp if you actually want the product.

exit opps are trading energy...either at a diff bank or on the buy side. Depending on

product possibly the financial desk of a trade house.


I'm interested in rates as well. For energy specifically, I like the underlying fundamentals behind the industry. Could you give some insight into Energy derivatives?

Also, as an incoming intern I have very surface-level knowledge so how about instead of calling it "fluff" you educate me on why I'm wrong instead. Give me the grace you'd give yourself as a 3rd yer uni student. Thanks


Tell you something about energy derivatives?

I'm short 300 MW Feb21 On-Peak 100c ERCOT WEST RT financial auto-exercise at $0.85/MWh.

THAT is the scariest sentence, I have ever written.

...and why I love my market.

Namaste. D.O.U.G.

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