Tag sale on Round Hill Road
Computers will eliminate currency traders in the very near future.
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what a shame.
I read your article and I think Walt needs to address the issues.
Where I come from we have a set of words that describe men who dress in women’s dresses, wear make-up and go to bars together. But maybe its different in NYC.
I am not so sure that these peeps are that smart. They were not smart enough to avoid getting caught manipulating markets (at least accused of). At one point in my checkered career I worked at a large bank that had a large and profitable currency business ( as most large banks do) and had the misfortune of being physically located near the trading desks with both traders and “sales professionals”. I made 2 observations, the first being that the bank (and its peers) had a license to steal by buying on the bid side and selling on the offered side with small spreads and large volumes without necessarily taking principal risk and secondly the “professionals” in the currency department were not significantly different than the help behind the deli counter making sandwiches during lunch hour crush in mid town Manhattan; they both worked quickly, executed under a time constraint and had the the same issue in speaking the King’s English. This was back in the late 1990,s early 00’s so things may have changed a bit since then.
Banks have a natural monopoly on the currency markets and there does not seem to be a need to highly compensate someone for taking an order or punching in a trade in an electronic system. Many of these Wall Street positions have been eliminated over the years the same way that manufacturing has squeezed out the legions of line workers wielding large spanners on an assembly line. There may be some readers of FWIW whom disagree or have different experiences, but technology is squeezing every industry from Wall Street to Main Street and this is just another example.
Currency funds are having a hard time. Greenwich based QFS shut down earlier this year on the heels of FX Solution’s liquidation late last year. Now they figure out how to automate the bond market (structurally difficult to do).
more interestingly, and more current, is the setting up of a clearing house for derivatives This is going to kill the margins and the need for “quality” talent in the biggest money making area of the 00s for big banks. More cuts in people and salaries are on the way. But in the end the money made and the housing prices of 2007 were not real anyway. So whay use it as a benchmark. I guess it is human nature to believe that the top of a bubble is reality.
But the end of banking growth will probably just be a minor set back for Greenwich. New money making industries are probably on the way. Just have to think outside of the finance box we have been in for the last forty years.
good point on equity derivatives. agree on new industries but not sure the venue is here. maybe growth at Grupo Bimbo, S.A.B. de C.V. (bakery operation in Byram) will save us
nothing more annoying than a derivatives trader at a street firm.
well actually there is: the bid-ask.
Government wants to control everything. Thank God someone fights back.
Just saw one on Saturday at the apple store. He rang me up.
Not so smart anymore.
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