They were saying it for years... S&T is slowly bleeding out, the algos and AIs are coming, spreads are vanishing, etc etc etc.
Well, then covid hit and people realized they really want some humans in the loop... your client doesn't just want some algo telling them where the bid is, they want someone to hold their hair as they vomit under their desk and gently whisper it'll get better.
That got me thinking... how many bank sales and trading seats are there out there right now globally? has anyone come across any good reports highlighting the latest trends in headcount?
Signed,
former vp bank options trader -> buy side trader -> silicon valley startup founder
I'm just chasing one bubble to the next, gents
Where the fuck is everyone? is this site no longer a thing? I was hoping to just drop this on some junior monkey here and come back to an answer.
answer: 32.2k, evenly split between equities and FICC https://www.spglobal.com/marketintelligence/en/news-insights/trending/b…
Wow, I can't believe S&T headcounts is twice of that of IBD. I thought everyone here says S&T is kinda harder to get in because they have been cutting headcounts since 2008. What are your thoughts on this?
difference is that ib is a revolving door, most s&t guys are staying in their seat or playing musical chairs
This is only at 12 banks btw - not quite a total "global" estimate.
my personal view is that it shrinks. S&T revenues have actually had a small boost in a few banks due to the volatility (spread charge widening) and clients getting involved to trade etc. If anything, this has proven that even with less headcount, trading desks can generate just as much revenue as before if not more.
Also moves like this happen maybe once in a decade? Once vols start normalising again spreads contract and clients go quiet again so we're back to normal. I'm not saying the future trading floor is 100% programmers and robots, but the general trend is towards electronic platforms where clients can deal on standard sized vanilla tickets and traders will be there for large requests/exotic requests etc.
Forgive my ignorance, but what aspects of working in e-trading are less attractive than working in "manual" trading? I understand that perhaps one would have to shift their focus towards algorithms, but isn't that just like what people do in a alogrithmic market making prop-shop?
Its not necessarily more or less attractive, but it would mean less headcount in the s&t divisions of banks. The automation isn't just necessarily for front office stuff, but for automating several middle office tasks as well.
IMO the future for desks is you have a electronic dealer/platform from which clients can trade the most vanilla products (like we're already seeing in cash equity, spot FX, Fwds, vanilla options etc) and you have several "manual" traders who handle the bigger client requests/more exotic products
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