What do S&T people actually do?

I've done reading to try to figure out what S&T actually is, but then someone I know just said its not sales people talking to the client and then sending that info to the trader? Traders make money off of spreads from trades, and sales makes money off of volume traded? Trying to get some clarification.

 
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S&T is 2 totally separate jobs

Sales Trading

Sales people talk to customers...send them research ideas...ask them what their positions are (some customers lie...no way to ever really know...but its just a friendly conversation)...ask what they are thinking about...asking about any concerns they might have...entertaining them....connecting them with othe resources if appropriate...all in the hope that the customer will call the salesperson someday and say "i have a trade i want to do....where will your firm bid (or offer) xyz of ABC security"

Traders field that last inquiry from the salesforce [where will your firm bid (or offer) xyz of ABC security]...ideally all day long...the trader makes the market...the salesperson relays that market info to the client and acts as a conduit.

Traders also prop trade in the market (depending on the product)...partially to make $$...partially so they know where the right price is for the securities they are designated "market maker"

Some traders never deal with the sales force and customers...they just trade with the anonymous inter-broker-market screens...tho this is less frequent at banks these days...these are "proprietary traders"

you might be able to guess...but certain outgoing personalities do better at sales than others....while traders need to be more analytical. The salesperson never has economic risk...they never have positions of their own...they just relay info...but the trader does have positions..hence the name...the trader's job, is to trade..

just google it...you're welcome
 

also, the word "sales" is misleading...because S&T sales people don't really sell anything...they are "coverage" people...they cover clients...and act as a kind of service provider. It could be argued that they sell the services of their bank....but that language is not the most accurate way to describe what they do. Sale (Coverage) people manage the relationship between the bank and the client.

I was a BB trader....I'm now a client...coverage/sales people send me emails all day long about what their bank is thinking, various research stuff, positions their traders are looking to offload or put on (called an Axe sheet...ecause th etrader is "axed" to buy or sell certain securities), news updates they think are relevant...they will take clients out for dinner/drinks/sporting events/ arrange cocktail parties from time to time...all in the hopes that the client goto their bank, instead of another, when we want to do a trade.

From my experience, the avg client trade of medium size might make the bank 5-10k of bid/ask spread, on avg. Big trades can make the bank 100-300k of bid/ask spread...but these are not very common...maybe a few a day...depending on the day and the bank. Banks with larger client franchises (like JPM, GS) see more flow, and hence, more of these big trades "Make" is also not the right word...because sometimes the BB trader loses money on these client trades...the bid/ask spread is theoretical money...the trader needs to get out of the position at good prices to realize that $$.

just google it...you're welcome
 

From what I've gathered during my internship, the current "trader" that we today will be gone in 5-10 years. Flow products will come first, then illiquid products will follow. HOWEVER, traders will still be around. They will most likely be monitoring algorithms and making adjustments to them depending on the market condition/if they have a very strong view. Just to clarify, the traders won't actually be creating the algorithms. Banks have quants to do that. You must understand coding well enough to read and adjust the code to your liking, but you don't have to be a comp sci wiz. Sales will always be around as at the end of the day, it's a relationship business and you don't make any money if you don't have any clients.

 
undergrad20:
They will most likely be monitoring algorithms and making adjustments to them depending on the market condition/if they have a very strong view. Just to clarify, the traders won't actually be creating the algorithms.

just fyi, this is already how a lot of automated market making firms work. adjustments are pretty frequent and necessary.

 

I trade muni’s, a very illiquid product, at a BB so I can give you a pretty decent idea of what we do on the sell-side. Our whole purpose is to make a market in as much product as physically possible. That means running a book of risk, and generating revenue off of sales to customers or PnL off outright positions. So I dictate everything that our bank will sell for a given coverage area every single day. I also make markets for issuers, so I pitch timing and pricing ideas to banking for new issues. In any committing role you basically pitch positioning ideas to the buy-side or you prop trade. Most of my time is spent prop trading, because the market is a fucking grinder right now. Institutional sales is a much simpler job, you exist solely to sell bank inventory. That means you’re pitching your traders ideas to the buy-side and earning sales credit on product. Like wise it’s a salesman’s job to give trading insight into what the buy-side likes pricing wise and doesn’t. Hope this gives you a little insight into the day to day of things.

Tuna

 
Dog42:
Traders make money off of spreads from trades
This happened before, but because of MiFID II, this is now prohibited. Best-execution obligation, it is called. Brokers only make money on commissions and "buying/selling inventory" which is a fancy word for prop trading, which according to my former-VP, will soon be banned also.

I only speak for the EMEA region and Equity products, I don't know how MiFID II affects other regions and assets.

 

Meanwhile big tech is influencing elections, undermining democracies, creating new world orders, managing monopolies. But hey, as long as you punish the big bad banks you'll be popular as a politician

 

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