”A Stealth reduction in Force” is how one professional put it. We are hearing of light job cuts across the industry in Fixed Income( in US). Strategic hires made in 2009 and 2010 have come under pressure as trading volumes have dropped and client interest has been quieter than normal . The moves tend to be selective and handled very quietly, allowing some folks to seek alternate positions internally (where possible) or are being encouraged to find outside positions while they are on notice. Another troubling sign is the lack of urgency in replacing voluntary resignations. Even darling areas such as FX and Emerging Markets have seen a few reductions. The most notable cuts have been observed at the Director and Managing Director levels. Sales teams appear to have been more effected than trading and research. At an investor conference recently, one investment bank CFO warned that more cuts are likely as profit margins remain depressed and the US economy ambles along. What we need is a quick resolution to the US Debt ceiling and a believable resolution to the Europe Debt crisis to pull us out of these market doldrums.
Just Four Global Events Will Determine Investor’s Fates
The fates of investors and traders alike depend on how four politically charged events play out over the next 12 months. James Shinn takes a look at how the interplay of US monetary policy, Chinese economic growth, the European debt crisis and Saudi oil prices are likely to determine the future of the global economy. http://www.institutionalinvestor.com/Article.aspx?ArticleID=2855196&LS=EMS544288
Conversations in the Market
This week our question is for the Head of Electronic Trading at a recognized algorithmic trading firm.
Q: Where do you think trading execution is heading over the next five years?
A: The evolution and transformation of Wall Street trading desks over the next several years will continue to move further away from the traditional trading desks that we are all accustomed to. The “quant’ has taken us from a high touch sales trader environment to a low touch computer driven world in a very short period of time. Algorithms have reshaped how we trade and will continue to capture market share and dominate trading due to their ability to process large volumes of order flow in a very cost efficient manner. Continue reading
The Wall Street Mind
The Post Crash: Wall Street Won. So why is it so worried?? http://nymag.com/news/business/wallstreet/
Managing Expectations in a Tough Year
Managing Expectations in a tough year.
As we round the corner on the 2010 Wall Street bonus season, we take note of some changing attitudes and expectations. Shrinking bonus pools, uneven disbursement of bonuses and an array of deferred schemes have left Bankers feeling uncertain about their earnings prospects. Many on Wall Street were disappointed and frustrated with their bonuses, especially with the break from traditional correlations between production and payouts. Continue reading
Conversations in the Market
This week our question is for a FX eCommerce Consultant.
Q: What do you see as the main criteria buy side clients rely on when deciding what platforms to use?
A: It really depends on what their objectives are. Some firms need to manage a number of sell-side relationships, and chose a platform that facilitates this. Some are very focused on best execution and due diligence, so they need tools that enable that. Others are strictly all about the price–relationships and documentation be damned.
Battle of the Titans
Battle of the Titans – For big banks that have long dominated foreign-exchange trading, new competition has them scrambling. http://online.wsj.com/article
Dodd-Frank’s Impact on IT
Dodd-Frank’s Impact on IT – Interesting article concerning Dodd Frank, Capital Markets and Technology – http://www.wallstreetandtech.com/regulatory-compliance/229200184
