Drivers of Revenue for Market-Makers
Does a bear market necessarily spell bad news for S&T desks across banks? Or would increased volatility & changing liquidity in some asset classes make desks busier during times like these?
When the market is this volatile, there is no room for error at all. A swaps trader who sits next to me received a workflow from the sales desk but it wasn't going through and unable to hit his risk. He called IT and flipped shit screaming at top of his lungs. Literally the entire floor looked over. More volatility, more flows, increased PnL production, possibly of missing hedges, more opportunities in prop... at the end of the day, you have to make a market and typically, have to be consistent with your market for your clients regardless of the volatility, so it's stressful.
to be fair...the firm you are at has a history of crap technology infrastructure...MorganStanley for example is leaps and bounds ahead....so it really depends on the bank.
Lol yeah, you definitely worked here before. Does the initial D.T or V.G sound familiar?
lol...sorry...but nope
Oh and another input that really devastated us in Q3 in 2019 was when liquidity dried up when the repo market lee up back in September we had to cross the market to the hedge our positions, which dampened our PnL.
right now flow is lower, but vol higher which are competing forces. Do you see this as a net benefit or will PnL be lower?
I’m getting monkey shit on and people have the audacity to still ask me questions? I really really have no reason to respond anymore. This will be my last response on WSO for a awhile.
what does asking you q's have to do with getting MS? Did you consider that those two aren't connected? And thanks for the MS.
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