Transcript S&T Job hunting 101 - Ross School of Business

Sales & Trading Breakout
Michael Dalpe
Finance Club
11/13/05
Agenda
1. Equity Cash Trading
2. Program Trading
3. Bank of America Summer Program
Equity Cash Trading
• Traditional method to trade stocks with
liquidity concerns
• Lot’s of players involved = High Costs
• No guarantee of privacy = Potential front
running
• Must have trust in individual to execute
trade
Program Trading Topics (cont.)
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What is it?
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Who are the big players?
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What is required to compete?
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What % of the market is relegated to
Program Trading?
Program Trading (cont.)
Roles on the Desk:
1.
2.
3.
4.
5.
6.
Program Trading Sales
Customer Facilitation
Agency Trading
Principal Trading
Index Arbitrage
Algorithm creation
Role Responsibilities:
1 – 4 involve direct interaction with customer
4 – 6 involve detailed analysis and number crunching
3 – 5 considered “Trading” roles
5 – must be located off trading floor. Usually with proprietary trading group.
Program Trading (cont.)
Terminology Utilized
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Liquidity
Average Daily Volume
Market Neutral, Sector Neutral
Indexes, ETF’s, Futures
S&P 500, Russell 2000, Nasdaq
Index Rebalancing
Algorithms
TWAP, VWAP
Bid Sheet
Bank of America Summer Program
• 10 Week Rotational Program
• 3 – rotations each lasting 3 weeks
– 10 week spent on desk of choice
• Rank order top choices that include
– Sales & Trading & Research (FI only)
– FI, Liquid products, Cash Equities, Derivatives
• My rotations
– Mortgage Trading, Convertible Bond Sales, ETS
Sales/Trading
• No unique projects given, must find ways to
show your value