Thoughts on Central Risk Book Trading?
In my SA program, I have the option to rotate on CRB. I'm a CS major who wants to program, so I think it'll be a great fit. I've read a lot about how it secretly carries a lot of influence in the bank. Any thoughts on if this is a good idea? Are there exit ops to traditional SWE/quant? Thanks
Depends on the firm, some does job as the name suggests. CRB sounds like a good match if you're code-savvy. Should be able to make contributions for infrastructure level coding too. As an exit op, I don't see why you can't sell the experience for quant trading jobs
I'd guess it's the best desk on sell-side for quant fund /exit ops tbh
What kinds of exit opps do you think are available other than quant funds? Also, is there any other desks you would recommend to a CS major?
I think it may be helpful for most funds, including quantamental and other not-as-quant funds. You basically have a view across all the desks, so as someone else said it involves risk netting and trading; I believe it's the closest thing to a buy-side role within the sell-side, but don't quote me on that :)
Other desks for CS majors would be algo trading or systematic market making, but although a lot of work is software development, typically the desks are quant-heavy (think math/physics PhDs with a few MathFin masters). Tbh I'd probably recommend a computer scientist to stick with tech, especially in the start-up space... although maybe after a couple of years at FANG or even MBB.
nope. if you want to join quant fund, you just need to be a quant. doesn't matter which desk you are in. interview questions of most quant fund are more focus technical skills than your daily job.
I think its a good desk to spend time on. Few firms I am aware of is spending time and energy in upgrading their CRB technology stack. A big part of execution is reducing trading cost, so CRB can net the firm's risk and provide liquidity for clients. Another thing is the desk can try to trade out of the firm's risk (so there is a bit of a prop trading sense to it).
But at the end, this desk (in my mind) is not focused on trading and trying to capture as much as alpha but as a form of reducing/mitigate cost and risk. So you would probably view your PnL as "how much savings did we bring to the firm". At the very core, any time a firm tries to consolidate its liquidity to mitigate/reduce cost, that's probably a good bet.
you are right. this is not really a trading desk so other desk think this desk more like a cost center than revenue center.
bump. interested as well. heard a lot that crb at BB banks lost money these year. no sure if this is right desk in terms of compensation. Anyone has any insights? Thanks!
not good in term of compensation but you do get developing programming skills that later help you find jobs in more promising industries like computer software.
i will say the package (base+bonus) working 8 years in central risk book (vp) is less than half of what will you get paid in facebook for same number years of experience. (facebook dp around $500k )
do keep in mind that you are not the only people not getting paid well in sell side, everyone in sell side is not getting paid well nowadays.
Saw online that the central risk book desk is technically more of an internal support role, it is not considered pure FO and therefore not as respected within the markets division as many other trading desks. Thoughts?
True. If their PnL is interpreted from how much they have saved for the firm, it is too vague since your performance is still subject to the management team’s interpretation not concrete like other desks on the floor. Don’t know how good their total comp number looks like. Any thoughts?
not good. as a general rule of thumb, the more indispensable, the more you get paid. you did realize systematic trading means you give companies all your IP right? once you get everything built up, your value to the firm become marginally less. you can't be the only person knowing how things work because business continuity team in your firm will ask you to teach everyone in your team how things work. most of trading models make money are simple and there aren't many opps for value-add.
so in the end, you become a tech ops as a trader.
even worse, sell side is paying less and less nowadays. every year bonus day is disappointment day
Citadel made a huge hire from a bank to head up their CRB last couple of years. The PM made PM at 28 at a sell-side bank. Last year they were actively recruiting for the team.
u mean paul jeffrey? i will say he is more lucky than merit. let us wait three years and see if he still keep the seat.
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