asking the same question a week later doesn't guarantee answers. Nothing on their site indicates a prop group solely for that purpose but my guess would be that fx/rates are handled by flow traders who also trade a small prop book.

 

A week later! Try the next day.

There most likely is not FX/Rates prop group because those desks have proprietary trading inherently built into them. Every FX desks on the street engages in prop trading on a daily basis because no trader can make a living on pips. The rates desk is prop because the trader can decide what the hedge and what to leave un-hedged.

Not to be rude, but go do some reading. You have 26 bananas and nothing of substance has been contributed to this site, you have not even started any really good discussions. All you do is ask questions like "Most baller groups at GS/MS", "L/S the best trading strategy, and "What are the top 20 Global Macro HF." Usually we answer questions like these or they get no responses and they are left alone, but you seem particularly persistent.

Every try googeling "Largest HF" or "List of best Hedge Funds"? How about searching this site or reading a book that is recommended? If you had read any number of the previous posts from experienced user you would see how foolish a question like "the best trading strategy is."

Your posts don't show any sign of prior research. Your just another one of those kids that thinks they are going to be a rockstar trader at GS or an M&A guy, when in reality you have no comprehension of the blood, sweat and determination that it takes to get an interview with those places, let alone an offer. I gave up posting on your questions because I feel like I am wasting my time. Also, give up on getting an internship at one of those top HF right out of undergrad. Those go to Harvard/Wharton kids and kids which have strong connections. Look to get a job at a BB, work hard and kick-ass, and then transfer over to any fund you want.

Stop being young, dumb, full of cum; do some reading/research and come to us with detailed questions where our answers will actually provide some assistance (like when your a junior looking for his internship.)

Disclaimer to new users: Foolish questions from new posters are to be expected. You will see that a majority of the experienced posters on this site do generally help them out. This post was designed to help lessen the "clutter" on WSO and to motivate bcsisbad to conduct further research.

"Greed, in all of its forms; greed for life, for money, for love, for knowledge has marked the upward surge of mankind. And greed, you mark my words, will not only save Teldar Paper, but that other malfunctioning corporation called the USA."
 

Goldman prop trades everything, as do all the major banks. FX especially. Recently their research department has made 6 bad calls on the euro in a row, which has prompted people to wonder if Goldman recommends buying the euro, their prop desk wants to sell it and vice versa. (from ZH)

But that kind of prop trading wouldn't be similar to their principal strategies group. Principal strategies involves a crazy amount of stat arb and algorithm based trading, as equities are basically now just a mass of machines frontrunning each other. Rates and fx aren't all algo'ed out yet. Citadel sure hopes that one day they will be tho.

 
furiousgeorge86:
Goldman prop trades everything, as do all the major banks. FX especially. Recently their research department has made 6 bad calls on the euro in a row, which has prompted people to wonder if Goldman recommends buying the euro, their prop desk wants to sell it and vice versa. (from ZH)

But that kind of prop trading wouldn't be similar to their principal strategies group. Principal strategies involves a crazy amount of stat arb and algorithm based trading, as equities are basically now just a mass of machines frontrunning each other. Rates and fx aren't all algo'ed out yet. Citadel sure hopes that one day they will be tho.

readin a little too much ZH my friend?

 
Best Response
adehbone:
I beleive they have one under FICC. You would be a complete moron to trade FICC prop at gs/db/citi. Maybe you missed but the flow desks in FICC just let all those banks have perfect Q1.

There are many reasons why you would rather trade prop then be a sell-side trader even on a succesful desk. First and foremost in prop you are garaunteed to get paid out on the money make whereas as a market maker/sell-side trader your pay is discretionary. Anyway, most traders on goldman's rates and FX desk would certainly trade their job for a prop trading gig where they didnt have to spend 75% of their day making markets for clients and they could have a set payout. So no you would not be "a complete moron" to trade rates or FX from the prop side of the business at a bank.

 
Bondarb:
adehbone:
I beleive they have one under FICC. You would be a complete moron to trade FICC prop at gs/db/citi. Maybe you missed but the flow desks in FICC just let all those banks have perfect Q1.

There are many reasons why you would rather trade prop then be a sell-side trader even on a succesful desk. First and foremost in prop you are garaunteed to get paid out on the money make whereas as a market maker/sell-side trader your pay is discretionary. Anyway, most traders on goldman's rates and FX desk would certainly trade their job for a prop trading gig where they didnt have to spend 75% of their day making markets for clients and they could have a set payout. So no you would not be "a complete moron" to trade rates or FX from the prop side of the business at a bank.

Valid points I guess got ahead of myself. The place I interned prop and market making rates/swaps. The prop trader had a different view, if your at a strong bank it may be better to be on the flow side, safer as long business is flowing. Prop guys don't always have good years, especially if said trader specializes in something that may show low voliatility or said market was like in 2008 when spreads were far from normal. As well he mentioned that being at a bank there was alot of added layers he would not have to deal with or see at a fund.

 

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