Sales Trader on Electronic Desk
Haven't read a lot about electronic desks on here. But how does the of a sales trader differ compared to more traditional desks such as FICC or equities.
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I spent time on electronic back when I interned. I was not a fan of the sales-trader role when I shadowed. Think of it as an A->B->C workflow, where A is the client, B is you (sales-trader), C is the 'trader'.
As B, an electronic sales-trader, you're essentially handling orders that A wants a little bit of a personal touch on before sending to C, the automated, electronic platform. You're talking to A and hitting the buttons to route orders and use algos the client wants on C. Not really much original thought going on here.
As for how it differs from FICC or equities, personally never met a sales-trader in FICC but in equities the difference is that C is an actual trader that you relay information between for execution.
As a whole I found it to be really uninteresting and rote. Not much skill built here other than talking to clients and learning the electronic execution platform.
Entire street has been hit by layoffs and closures in equities. Direct line equity traders are a thing of the past. GS famously had 100 or 200+ and now has 2 doing that entire job.
The concept of a sales-trader can exist only in equities. FICC (maybe not FX or rates which are super liquid and electronic) doesn’t have that. Bonds are OTC, corporate bonds have more hair as you go lower on the quality spectrum, and the type of an investor is diff since they’re one that caters to complexity vs simple equities heavy order volume flow.
The role you’re describing is a pseudo-ops seat. You’re selling/pushing your platform so a client can use it, you hold their hand a little and they transact via you but it’s via your program. You (really, your tech guys) set up dark pools and build the route for the trade. You don’t take risk – you’re not a “trader” but a facilitator. Those desks make $ on fees from the clients for volumes executed. They aren’t on the cutting block as a subset of equities (this is more desirable to clients – cheaper, just want execution, less hand holding than traditional) but who knows what’s future-proof. You’re basically optimizing yourself out of a job, if you think about it.
Agree completely with you, not interesting at all and very repetitive. OP, you can read Flash Boys to learn more about this all.
I haven't interacted with electronic desks so not much to add there.
I will say, though, they seem to be among the less desirable desks to be on. Electronic platforms have a future, just not the intermediary (sales-trader). So comp is probably on the very low end of the spectrum within S&T, as well as exit opps and mobility.
If you are interested in sales, I would definitely try to go for a more traditional sales role.
I'm doing a rotational program at a MM Bank. Rotations include FX, Equities and FX. However I thought that electronic was more future proof. But thanks!
Sed fuga iusto eos. Dolores hic laboriosam quas maiores.
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