SERVING THE QUANTITATIVE FINANCE COMMUNITY

 
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flyingpony
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August 4th, 2010, 10:23 am

I have an interview soon with an IB for a position of IPV (independent price verification) - quantitative analyst. I am just wondering what exactly people does in this role. Does it belong to FO or MO? I have searched for the related information and found out this function is carried out by product control in many institutions. I am starting to wonder if this is really a quant role, although they do require you have strong quantitative background and C++ progamming ... I'd really like to find out what I will be asked at the interview. Anybody can share some experience? Thank you so much in advance.
Last edited by flyingpony on August 3rd, 2010, 10:00 pm, edited 1 time in total.
 
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ThinkDifferent
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August 4th, 2010, 2:53 pm

QuoteOriginally posted by: flyingponyI have an interview soon with an IB for a position of IPV- quantitative analyst. I am just wondering what exactly people does in this role. I have searched for the related information and found out this function is carried out by product control in many institutions. I am start to wonder if this is really a quant role, although they do require you have strong quantitative background and C++ progamming ... I'd really like to find out what I will be asked at the interview. Anybody can share some experience? Thank you so much in advance.what IB is that?? if it's DB I hope you are sexy looking lady!anyhow...depends what you mean by really quant role. depends on the place. it could involve reimplementing the models, so, in this aspect, it is not much different (not in pay terms of course ) from a FO desk quant. I suggest you ask this question during the interview.
Last edited by ThinkDifferent on August 3rd, 2010, 10:00 pm, edited 1 time in total.
 
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LucasMike
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August 4th, 2010, 4:35 pm

bad news - IPV is always back office...to give you some background: as the name suggests - it is Independent from FO - as a function IPV runs daily, monthly and quarterly pricing of the financial instruments to verify that the prices (or models and inputs for exotics) supplied by FO are correct.it's mostly a boring job - especially at junior levels as you have to be at least senior VP (actually, rather director) to challenge FO and have a good conversation with themof course - forget learning anything about trading / strategies - your job is to verify some prices / inputs / models - you don't make money for the bank, you just check if the data is correct
 
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flyingpony
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August 4th, 2010, 4:50 pm

QuoteOriginally posted by: LucasMikebad news - IPV is always back office...to give you some background: as the name suggests - it is Independent from FO - as a function IPV runs daily, monthly and quarterly pricing of the financial instruments to verify that the prices (or models and inputs for exotics) supplied by FO are correct.it's mostly a boring job - especially at junior levels as you have to be at least senior VP (actually, rather director) to challenge FO and have a good conversation with themof course - forget learning anything about trading / strategies - your job is to verify some prices / inputs / models - you don't make money for the bank, you just check if the data is correct Thanks for the clarification. In terms of careers progression, is there any possibility to move from this IPV (although the job specification suggests itself quant analyst...)to front office quant role. I am indeed a junior level candidate....
 
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photoguy
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August 4th, 2010, 4:52 pm

I was actually contacted about a similar (if not identical) position recently. When I talked to them, it turned out that, while "strong C++ and quantitative skills" were a formal requirement of the job, the job did not involve actually doing any programming, math or modeling. Needless to say, it was a short conversation.
 
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jfuqua
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August 4th, 2010, 8:48 pm

Sounds like what firms call QA. Even though model/price verification, what they want to find is an analytic person [in comparison to regression testing] who can discover, through creative means, how to find such errors and then automate it so others can regression test ! The the person would do regression testing or laid off. All too common assumption that creative analysis can be formalized for non-creative people.
 
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frattyquant
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August 5th, 2010, 1:48 am

QuoteOriginally posted by: flyingponyQuoteOriginally posted by: LucasMikebad news - IPV is always back office...to give you some background: as the name suggests - it is Independent from FO - as a function IPV runs daily, monthly and quarterly pricing of the financial instruments to verify that the prices (or models and inputs for exotics) supplied by FO are correct.it's mostly a boring job - especially at junior levels as you have to be at least senior VP (actually, rather director) to challenge FO and have a good conversation with themof course - forget learning anything about trading / strategies - your job is to verify some prices / inputs / models - you don't make money for the bank, you just check if the data is correct Thanks for the clarification. In terms of careers progression, is there any possibility to move from this IPV (although the job specification suggests itself quant analyst...)to front office quant role. I am indeed a junior level candidate....This job is even more back office than the back office, and more often than not, its separated from the from office by a continent or two. If you have little to no experience, this is a great way to get exposure to the products and pricing (assuming you have no better offers). Otherwise, I wouldn't recommend taking it, and it will probably be outsourced to India/Singapore/Poland/Brazil in a year or two.
 
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KackToodles
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August 5th, 2010, 2:48 am

QuoteOriginally posted by: flyingponyI have an interview soon with an IB for a position of IPV (independent price verification) - quantitative analyst. Does it belong to FO or MO? if you don't know, you belong in BO and the job is probably right for you.
 
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twofish
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August 5th, 2010, 5:17 am

People are talking nonsense. It's a new job, and I think it has a bright future. PM me for why.
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flyingpony
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August 5th, 2010, 8:56 am

QuoteOriginally posted by: KackToodlesQuoteOriginally posted by: flyingponyI have an interview soon with an IB for a position of IPV (independent price verification) - quantitative analyst. Does it belong to FO or MO? if you don't know, you belong in BO and the job is probably right for you. Well it is kinda hard for people who trying to land their first job to know all these details, but I will surely find out at my first interview.
 
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flyingpony
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August 5th, 2010, 9:00 am

QuoteOriginally posted by: twofishPeople are talking nonsense. It's a new job, and I think it has a bright future. PM me for why.Many thanks A PM is sent.
 
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daveangel
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August 5th, 2010, 9:32 am

QuoteOriginally posted by: flyingponyQuoteOriginally posted by: twofishPeople are talking nonsense. It's a new job, and I think it has a bright future. PM me for why.Many thanks A PM is sent.you should take anything twofish tells you with a pinch of salt - he is unduly optimistic
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photoguy
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August 5th, 2010, 1:30 pm

QuoteOriginally posted by: jfuquaSounds like what firms call QA. Even though model/price verification, what they want to find is an analytic person [in comparison to regression testing] who can discover, through creative means, how to find such errors and then automate it so others can regression test ! The the person would do regression testing or laid off. All too common assumption that creative analysis can be formalized for non-creative people.The way the ED I spoke to described the job, it was even less interesting than that. It was literally just checking the inputs traders used to generate their system marks against market observations (e.g. dealer quotes, etc.) and looking for material discrepancies. Any such discrepancies were to be flagged and brought to the attention of the trader. If the trader admitted an error, there was some accounting work to do. If the trader disputed the error, then it was escalated to someone else and it wasn't your problem anymore. The title was nearly identical to what the OP referenced, at the VP level. I wouldn't be too surprised if it was literally the same position. My conversation with them was in the last couple weeks. I asked about mobility within the firm, and they said that it is possible but very difficult.
 
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LucasMike
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August 5th, 2010, 5:34 pm

look - it's very simple - it's a boring job, you don't add much value to the business, you have chances close to zero (although they will tell you something different at the interview) to move to FO (sure - there were some cases of ppl moving from IPV to FO - but believe me - it's veeeery rare)!some ppl call IPV stuff 'excel monkeys' - all you do, especially when junior - is to run the same 10 excel sheets every day, it has to be completed by certain hours of the day and if not you get flagged to big boys for not completing your routines on time... plus you get quarter and year ends - dealing with stupid auditors and internal audit... don't understand why somebody would ever want this job if they knew what it is about upfront...don't take this job if you don't have to
 
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deepvalue
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August 6th, 2010, 4:05 am

Yeah don't listen to twofish without a bucket of salt. Kacks is funny and always true even if it's not what u want to hear. If u get this job on your resume, u are deep back office, so deep even the accountants won't hire u.
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