Rates derivatives sales / broker - questions on business model and role

Hi Everyone,

I have an offer from a small rates brokerage house in Madrid. The team/shop is small but has big ambitious plans for growing their rates client book in the US. And for that reason as an American and native English speaker they would like to hire me. Comp would be around 35-40k eur + quarterly discretionary bonus + commision. Originally, I had my mind set on S&T within Global Markets at a BB in London or Paris. However, that has not panned out and this seems like the best option I've got. 

In the job description it says they are looking for someone who can take on new clients and generate trade ideas and research. I'm a bit confused as I didn't realize broker pitch trading strategies or write macro reports. Can someone shed some light on this?

Also, where does the broker sit in the value chain? Their clients are sell side firms and HF and they dont execute any trades themselves. Why would a sell side BB desk use the services of a small broker since they have their own market making specialist? And, likewise wouldn't a HF approach a rates sales team at a BB bank before broker? I guess I am a bit confused as to the order flow in this product. Any clarity here?

Does anyone have any opinion on rates brokerage? What has your experience been? What are exit opportunities? Does the compensation seem fair?


Thanks in advance

 

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