Would take probably 90% of prop shop offers over S&T no matter what if you want to trade for sure. To basket the firms into 4 categories and not get too crazy I'd say like: 

S: CitSec, Jane, HRT, Jump

T1: Optiver, DRW, SIG, IMC

T2: Akuna, CTC, Maven Securities, Flow Traders

T3: Belvedere, Transmarket, Gelber, Valkyrie, Wolverine, Peak6

Tons of other firms too so I might've missed some big ones. But I would take all of these over an S&T role at a bank unless comp was significantly below market which from what I've heard the only one below 100K might be Valkyrie.

 

Honestly from the alumni of TMG at certain firms maybe they’re T2? Not too certain there. There’s also Old Mission Capital which is pretty strong.

For some of the T3 vs solid banking desks I’d say depends on product mostly. The more prop you can get with your product the more likely individual performance can easily be tied back down to you and you can build a track record, but you’d be building a track record to hop to the HF or Prop side of things anyways so usually have seen if you want to trade and trade prop, just get to the best prop seat you can.

Think CTC is definitely better than T3 just by pay and also solid in the OMM space. People really like it there, lot of traders staying very long periods of time which typically you don't see in the industry. Most people just keep hopping for either pay, WLB, or product competitiveness, so seeing people staying there for 5-10 years makes it sound like a pretty solid shop if nobody wants to leave. Have heard a rumor recently though during GME or Covid that something happened big with their balance sheet but not tied in there, also saw two 10+ YoE CTC guys leave after that rumor but maybe it was just a coincidence.

 
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Don't know why people are so obsessed with going to prop, bruh. Most people I know who did prop/ market making at tier 1, like Citsec/whatever (~60%), are let go after two years, and the guy I know who went to one of these T3 prop shops got let go within one year. So they end up moving significantly downstream or just going back to school, and these people are fukin brilliant, like top of the class. I feel like with starting at a prop, there is a much higher probability of washing out very early before you even get a chance to build a track record or whatnot. Stability and exits from a good bank trading desk are very underrated IMO. At least if you don't mess up, you can make VP in a couple years predictably and trade your own book for a while. If you are dying to make more than just leave your seat after a couple of years to trade a book at a multi-manager as a sub-pm or sth, pay there can be much higher than a typical options trading seat at a prop. Essentially by going with a bank, you sacrifice some comp for much higher stability and network but higher upside opportunities are still available to you given experience. I don't think it's a bad tradeoff if you don't actually know how to make money trading at this point. Most hires (~70%+) at the multi-manager platforms are from bank trading desks (possibly due to more institutionalized pipeline/ client relationships), not prop, and some bank vol traders do make the move to tier 1 prop. These mm pm jobs, althought volatile, are where people get the tail outcomes in comp. I would argue there are much, much fewer BB vol trading seats for new grads than prop seats, given how much headcount has shrunk since GFC; each desk hires like 1 person a year. Also, learning to be smooth, play politics/ be client-facing in a corporate setting is probably good for your career long term. Prop tends to attract very, very technically capable people who don't really care about team dynamics and only PNL. Obviously the technical bar is much higher than a bank but this business is not only about tech/quant ability. This is good if you think you are going to be a star solo trader forever. But what if you want to start your own fund/firm/ run your own team one day? Think about the background of every single leading macro/vol trader/ fund manager now, Chris Platt, Alan Howard, Chris Rokos, Dalio, Yan Huo (capula founder), Said Haidar, even Soros and Drunkenmiller, and the list goes on, all ran their own trading/research teams at banks. Hell, even like the richest quant now Alex Gerkos started quant trading at DB. Technologically more advanced prop firms existed when they were young too. Why didn't more star managers come from Prop then? The only real prop-trading billionaires i can think of is Jeff Yass and formerly Sam Bankman Fried lol. 

Second, books being traded at the t2 and t3s are much much smaller than a bb platform's even after regulatory changes, so you need much higher trading returns to justify your seat; hence, I think that is another reason for higher turnover. Bank traders can also make money through braindead ways like trading the flow so again more ways to make stable revenue. I spoke to some people at a tier 1 prop and for a single asset class, and they churned through about two dozen traders in the last couple of years. Bar is pretty high because they are coding up their own strategies all the time. 

 

I think it’s because quant is the new thing that’s “poppin”. I have gotten very close to rlly good offers but I also like my seat at bank. At the end of the day the alpha at an omm firm are the qr’s, I feel like people have studied equities for 30-40 years now. The macro space is still newer and more individual value add.

 

I think it’s because quant is the new thing that’s “poppin”. I have gotten very close to rlly good offers but I also like my seat at bank. At the end of the day the alpha at an omm firm are the qr’s, I feel like people have studied equities for 30-40 years now. The macro space is still newer and more individual value add.

 

After reading through this even more, I am very inclined to agree here. Especially regarding book size and PM hiring habits. Most HF's will hire from banks, think about the risk/book-size you're managing at a bank vs a HF. Who is more likely to be successful managing a 9/10 figure book? The person taking the other end of the trade at the bank and still somehow coming out ahead (signaling good trader/risk awareness in size) or the guy trading a low 8-figure book?

Prop vs Bank strategy/size is very very different. I might've made the comment initially, but after networking more and talking to bank guys and HF PMs, I would definitely consider a solid bank. The main difference is the culture, it is very very different, and being young with a wife I am very happy I work 40-45 hr weeks vs 60+.

 

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