SERVING THE QUANTITATIVE FINANCE COMMUNITY

• 1
• 2

ftang
Topic Author
Posts: 7
Joined: August 20th, 2006, 2:39 pm

I am a trader with MFE background, trading options in sell side. I can understand most of the model derivations and have decent c++/excel skills. but never worked as a quant, because I was hired as a trader when graduated from MFE.Now if I lose my job, where can I go? You probably thinking: well, go find another trader job. Well, I am afraid the answer is not quite simple. Anyway would like to hear what people think, thanks.

slacker
Posts: 114
Joined: January 14th, 2006, 12:21 am

how many years trading? if you have been doing it for a few years why go into quant now? Target strategist , risk advisory type roles on buy side.

DevonFangs
Posts: 3004
Joined: November 9th, 2009, 1:49 pm

Just consider that there must be a reason why quants actually want to be traders. You could move to market risk management, many of those guys are ex traders.I love the combination "decent c++/excel skills"

ftang
Topic Author
Posts: 7
Joined: August 20th, 2006, 2:39 pm

Sell side is shrinking, some traders left, bonus cut, activities down, etc.Not saying quant is what I really prefer to be, but it is a skill that many other traders don't have.

DevonFangs
Posts: 3004
Joined: November 9th, 2009, 1:49 pm

QuoteOriginally posted by: ftangSell side is shrinking, some traders left, bonus cut, activities down, etc.Not saying quant is what I really prefer to be, but it is a skill that many other traders don't have.What's the median trader's bonus in tier 1 and how does that compare to, say, 2006?

ftang
Topic Author
Posts: 7
Joined: August 20th, 2006, 2:39 pm

QuoteWhat's the median trader's bonus in tier 1 and how does that compare to, say, 2006?It depends on which desk and senority. Some business are totally shut down in some banks such as commodities, where many other business are cut such as bonus is paid with less cash and more stocks with 3-5 years of contingency payments. Senior traders quit, apparently their bonus is cut by more than 50%, juniors stay because they haven't felt so much pain.

capafan2
Posts: 924
Joined: June 20th, 2009, 11:26 am

QuoteOriginally posted by: ftangQuoteWhat's the median trader's bonus in tier 1 and how does that compare to, say, 2006?It depends on which desk and senority. Some business are totally shut down in some banks such as commodities, where many other business are cut such as bonus is paid with less cash and more stocks with 3-5 years of contingency payments. Senior traders quit, apparently their bonus is cut by more than 50%, juniors stay because they haven't felt so much pain.Why don't traders ever give out numbers, even ballpark ones. I have a friend who will say - Money is good but will not say how much it is. Kind of ridiculous. Almost makes me believe they are collectively holding on to an image and are afraid if they give out the numbers that image will crumble.
Last edited by capafan2 on March 9th, 2013, 11:00 pm, edited 1 time in total.

bearish
Posts: 5387
Joined: February 3rd, 2011, 2:19 pm

QuoteOriginally posted by: capafan2QuoteOriginally posted by: ftangQuoteWhat's the median trader's bonus in tier 1 and how does that compare to, say, 2006?It depends on which desk and senority. Some business are totally shut down in some banks such as commodities, where many other business are cut such as bonus is paid with less cash and more stocks with 3-5 years of contingency payments. Senior traders quit, apparently their bonus is cut by more than 50%, juniors stay because they haven't felt so much pain.Why don't traders ever give out numbers, even ballpark ones. I have a friend who will say - Money is good but will not say how much it is. Kind of ridiculous. Almost makes me believe they are collectively holding on to an image and are afraid if they give out the numbers that image will crumble.I can't quite help the feeling that the numbers used to be suppressed because they were too high and now they are suppressed because they are too low. That being said, if the range is $0 to$20,000,0000, I don't think the median bonus of traders in tier 1 (whatever that may be, exactly) is a terribly useful concept, nor do I think anybody would actually be in a position to know it. If we were to ask for the median bonus of a VP level USD interest rate option traders working for major dealer desks in NY we may have more luck, but I guess the flip side is that it will be relevant to relatively few people around here...

ftang
Topic Author
Posts: 7
Joined: August 20th, 2006, 2:39 pm

Sorry guys if you want to know the exact numbers for bonus on wall street, I can't give you specifics, and probably not really relevant to the subject in this thread. But assured as you guessed, the number is going down siginificantly.

spv205
Posts: 478
Joined: July 14th, 2002, 3:00 am

ftang I would say quant market was smaller than trader market and is also shrinking... market risk management is where your skills would be most appreciated

mit
Posts: 1169
Joined: February 5th, 2005, 4:52 pm

DevonFangs
Posts: 3004
Joined: November 9th, 2009, 1:49 pm

QuoteOriginally posted by: mithow about using your connections to sell a few ferrari/lamboginiyou mean Lamborghini or really the fake made in china lambogini?

DevonFangs
Posts: 3004
Joined: November 9th, 2009, 1:49 pm

Was wondering, of course total comp is largely driven by bonus, which depends on the specific business, but what would be the base salary like for a random head of trading desk in a major bank here in London. Talking about head of traders, or whoever can be called the boss. I would say like 300 grand, but I might be wrong by a factor of 3. I don't know, for example how much does the MD dude who runs, say, the credit flow desk make as a base per year?

DevonFangs
Posts: 3004
Joined: November 9th, 2009, 1:49 pm

QuoteOriginally posted by: DevonFangsWas wondering, of course total comp is largely driven by bonus, which depends on the specific business, but what would be the base salary like for a random head of trading desk in a major bank here in London. Talking about head of traders, or whoever can be called the boss. I would say like 300 grand, but I might be wrong by a factor of 3. I don't know, for example how much does the MD dude who runs, say, the credit flow desk make as a base per year?Because I'm under the impression that bonus can of course vary from $0$ to $+\infty$, but the base might be pretty much standard everywhere.

Hansi
Posts: 3300
Joined: January 25th, 2010, 11:47 am

QuoteOriginally posted by: DevonFangsbut the base might be pretty much standard everywhere.I can't put an accurate figure on the roles you asked about but I've heard anecdotal evidence from an HR person that the base salaries in many firms are decided on by looking at "market benchmarks" for similar roles and experinece that's provided by independent consultants that aggregate the figures from various recruiters and career trainers (the people that do those 'YOU CAN DO IT' seminars).