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Jurassic


Total Posts: 186
Joined: Mar 2018
 
Posted: 2019-01-14 12:26
"They are looking for a proactive client focused trader and an idea generator. Risk taking experience would be preferable but the bank will also look at a trader coming from a brokerage environment."

1) What is client focused trader exactly?

2) What does the second sentence mean?

ronin


Total Posts: 407
Joined: May 2006
 
Posted: 2019-01-14 16:12
"proactive" = has a pulse
"client focused" = does not have a pulse

"risk taking experience" = not brain dead
"coming from a brokerage environment" = brain dead

Good luck...



"There is a SIX am?" -- Arthur

Jurassic


Total Posts: 186
Joined: Mar 2018
 
Posted: 2019-01-14 16:17
that made me laugh so hard

what exactly is a client focused trader?
what is a brokerage environment?

djfostner


Total Posts: 28
Joined: Oct 2008
 
Posted: 2019-01-15 01:36
Generally a "client focused trader" would be a traditional sell-side trader (ex Goldman, BOA, etc). Someone whose responsibilities would be to run a book, but who is generally making markets for clients of the bank and deriving their PnL from client flow. "Idea generating" usually includes coming up with products (or determining what existing products might be useful to a client) that could be shopped to clients with the intent of generating fees and/or a profit stream from the client's flow. In some banks sales desks would be responsible for shopping the ideas (or even an IB), but not always so.

As for "risk taking experience", that would be experience in running a book, or part of one, where the individual is responsible for the book's PnL via their trading/hedging decisions. Whereas someone from a brokerage environment would be a broker who is responsible for connecting a buyer and a seller for particular trades, but who doesn't take on the risk of participating in the trade (ex. ICAP, SCS, Cornerstone, and Starfuels in the OTC energy space). They instead make money by collecting fees for connecting buyer and seller and filling orders. While in general a broker will have less market knowledge than traders, as the job is generally closer to a sales role, the best brokers generally have significant domain experience.

Hope that helps and is clear enough. Feel free to shoot me an email or post if you have other questions. If you're pursuing the job advert I wish you the best of luck.

Jurassic


Total Posts: 186
Joined: Mar 2018
 
Posted: 2019-01-15 10:56
@djfostner so a brokerage environment is not a bank? how does client focused trader have anything to do with risk taking experience? ronins answer suggests it doesnt

djfostner


Total Posts: 28
Joined: Oct 2008
 
Posted: 2019-01-16 00:28
The terms aren't set in stone, so I could be wrong. Especially so since I haven't kept up with the landscape of how bank desks are looking these days, and my knowledge is fairly limited to my little OTC energy corner of the world.

I've never heard a bank employee refer to themselves as a broker (in energy at least, though it's more prevalent in other asset classes like FI) as most banks do their best to make money by internalizing their client flow in energy. But there certainly are bank desks that do nothing but back-to-back their client blocks and still consider themselves to be trading a book (despite not needing more than the ability of counting their hand piggies to pull off the trade and not having risk on for more than a few seconds even when they miss their hedges).

A client focused trader is generally still going to build up a book based on the inventory he's acquiring from being the other side of his clients' paper. If it's a talented trader or a significant profit center, often times that trader is given a little bit more room as to what the risk manager/team thinks needs to be hedged (regulations have taken much of the speculation/risk out of these books at banks, but as long as it can be considered "market making activity", a trader is given a bit of room as to the exposure he's allowed to have in his book). Again, this could be dated info and no longer true, but for many years post-2008 it was the case. But as ronin has said, the role doesn't always seem to require someone to have a pulse or circulation of blood above the shoulders, but most of the time it helps.
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