MO to FO
I quite recently joined a small prop shop that trades oil and gas commodities as an analyst in the MO. The company is invested heavily in tech and trying to develop strong fin tech trading systems. But it has a long way to go based on the system I have seen the disorganized data dump that they provide. The firm does power, natural gas (physical and financial), a little bit of renewable and environmental (I.E. carbon credits). I would like to know how to transition out of middle Office and into front office but I would like to do so rather quickly because I feel like the longer I wait the lesser of a chance I have of actually accomplishing this goal.
How would I go about doing this? What should I try to learn and who should I engage with? Has anyone had any success stories? And finally is this a realistic goal or a difficult climb that only a few have Managed to accomplish. I have worked in business development and in market risk positions before and I sit on the trade floor right across from the traders. The roll consists of P&L reporting, (variance explaining), and broker reconciliation, and reporting to investors. Not a lot of critical thinking but I go above and beyond to understand the why and the strategies behind the trades so I can best understand the business and not just be an excel monkey. Also, if this doesn't pan out and I end up being in this roll for over a year. Should I leave after two years, look for another job in finance, or try to break more into a quant roll. What kind of exit opportunities am I looking at?
Based on the most helpful WSO content, transitioning from Middle Office (MO) to Front Office (FO) in a commodities trading firm involves several strategic steps. Here's a detailed plan to help you make the move:
Leverage Your Current Position:
Expand Your Skill Set:
Network Intensively:
Demonstrate Your Value:
Consider Further Education:
Evaluate Your Progress:
As for success stories, many individuals have successfully made the transition from MO to FO, although it is often a challenging and competitive path. It requires persistence, networking, and continuously proving your value to the business.
Regarding exit opportunities, if you decide to leave, your experience in market risk and business development, along with your proximity to trading activities, could position you well for various roles in finance, including risk management, trading, or even a more specialized quant position, depending on your skill set.
Remember, while it's a realistic goal, the climb from MO to FO can be difficult and not everyone manages to make the transition. It's important to be proactive, patient, and persistent in your efforts.
Sources: Move from back office to middle office to front office, Middle Office to Front Office in Sales & Trading, The best of the back (or middle) office?, From BO to FO and back again, or, how I learned to stop worrying and love technology, Many people move back office to front office
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