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CityLAD88888

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About CityLAD88888

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  1. This, etrading taking over jobs on the trading floor - these will most likely never come back (I work in electronic trading). There's a confluence of reasons why this trend will continue - automation, 'race to zero' (more brokers competing on commission rates for fungible goods than clients out there), restrictions on prop-trading (volcker rule - investment banks aren't allowed to gamble with their own money any more). It's been happening since the crisis and as the article alludes to most of it is structural decline rather than secular - don't think I've ever seen so many disappointed faces as on bonus day at the British investment bank on Canary Wharf I was working at 2 years ago!
  2. And as if by magic! From one of my fave lunchtime reading websites! http://news.efinancialcareers.com/uk-en/232664/sales-jobs-at-credit-suisse-need-to-stay-in-london/ http://news.efinancialcareers.com/uk-en/232672/advance-of-electronic-trading/
  3. ... And of course, they then get those Polish programmers to code the Traders in London out of a job by paying them (a nifty 'labour-arbitrage' pittance) to write algorithms that unwind client's trades in the market auto-magically - simples, sacking traders and replacing them with computers: another trend that's been going on in the City for 15 years I used to work in an Investment Bank on Canary Wharf writing these algos and now work on the sales side for an electronic trading brokerage in the City: I basically babysit those algos as my hedge fund clients place trades, occasionally taking those clients out to get p*ssed, as someone else here said there's no need for any of them to be in London it's all automated now: frankly if they moved everyone Milton Keynes or something tomorrow I'd be less stressed and richer! This is such an interesting (and not too often discussed) facet of the housing situation: it's one thing to price out the young but when you start pricing businesses and jobs out of your country's 'economic engine' you start to get very serious problems with your value proposition to the rest of the world very quickly!
  4. hahaha aaaah Mr Kreil, what a hero: his series on the beeb "Million Dollar Traders" in 2008/9 during the crisis inspired me I guess in many ways as a 3rd year uni student to take up a career in the City, and last year I had the pleasure of a night out with him in west London. TOP guy, great laugh on a boozy night, ex-Goldman trader, now in the Hedge Fund game and really knows his stuff to be fair - I remember him telling us and all his brokers over the copious amounts of Jagerbombs that night about his worst day as a trader: lost however many million quid in one day on Christmas Eve and had to drive back up to Liverpool for the holidays and tell his mum what'd happened! I was really surprised how many people subscribed to his/my/this forum's view on property that work in the markets when I first started.
  5. As people have already mentioned: it's already been happening for a few years in order to cut costs - Deutsche/HSBC in Birmingham (I used to live near their offices in Brum when I first left uni and worked up there, very s*****y and noteworthy one can afford to live near the office in Brum as a graduate!), JP Morgan in in Bournmouth, Bank of New York in Manchester, the list goes on. The Yanks have been doing it for a while too with New York - Goldman Sachs has a huge office in Salt Lake City (Not sure if you ever see rowdy Equity Salesmen taking Mormon folk out on boozy nights but stranger things have happened!). It's not just 'back office' (non-revenue generating) functions they're moving either: Deutsche's Brum office has a trading floor. I work at a electronic trading brokerage in the City now but have worked for a major Investment Bank on Canary Wharf before and can tell you that these guys are making less and less money every year and are desperate to cut costs so they're all looking at things like this and to be honest. like most here I say good on them! I'd much rather take a 10% cut as someone here said and save %50 on housing: I'm only 27 years old and most analysts/associates (junior guys like me) I know in banking (yes, shock horror, even the traders!) can't afford the prices, we'd all be better off. Our Hedge Fund clients in Mayfair who earn 6 or 7 times what we do ... that's a different story The problem (assuming you view it as such) for UK plc with banks moving somewhere else is that 'somewhere else' could be Paris or Frankfurt or most any other European city. You see, it works like this: when I come in at 6:45am someone in Hong Kong/Tokyo transfers the 'global line' and the 'risk on the book' to me, and at around 4 I transfer these to my colleague in New York, so all you really need is somewhere in Europe from which you can 'follow the sun'.
  6. Interesting stuff. I've worked for a major Investment Bank on Canary Wharf and now a 'Fintech' electronic trading firm/brokerage in the City, writing software to trade in the markets and going out and pitching/selling the algorithms to hedge fund/asset management clients. Obviously I can only comment on the investment banking side, but here's my two cents: In the secondary capital markets, finance and technology are converging at an exponential rate. Every year more traders lose their jobs and are replaced by programmers, had a beer with a recruiter today in fact who said he "doesn't touch traders now because the market is like that *hand going down motion*". First to go electronic was the simple fungible stuff like foreign exchange or equities (NYSE volume traded electronically estimated in the 80-90% region), but now (past 2 years or so) I've personally seen the banks making a huge push for the more illiquid/exotic stuff: bonds, derivatives etc. to be traded electronically. The truth is that their trading floors are making less and less money each year (various reasons) and they're desperate to bring return on equity up for shareholders: technology cuts costs and executes trades tens of thousands of times faster than human brokers. So as Jenkins rightly points out: frankly, the money isn't there anymore (despite media perceptions I've never seen so many disappointed faces as bonus day at the bank I worked for!) The problem for the banks is that they're huge bureaucratic juggernaughts (one of the greatest myths about Wall Street careers is that they're entrepreneurial) and they're bound by post-crisis regulation. As such they don't lend themselves well to the 'agile' software development style of a startup, I know there are a few contractors who have worked in the big banks on this forum who will testify that things take an age to get done. Therefore it's not hard to see how these guys could be 'undercut'/outpaced by genuinely disruptive innovations. The next 10 years will be very interesting. But I will say however, it's worth noting that if you're Goldman Sachs or J P Morgan, a huge bank, then regardless of technological trends, you have something very powerful: franchise client flow. So many clients trade with you because of your brand so you being able to find the most liquidity almost becomes a self fulfilling prophecy and therefore you almost ARE the market ... hard to see how that could be taken away.
  7. I s*** you not, I work with a trader who takes a seemingly pointless taxi trip now and again in the City for that very reason: the cabbies could make a fortune front-running all the boozed up cityboys who give them an ear-full about the markets! Any time I've taken a cab recently they've all told me the same thing: "it's absolutely silly, the prices, mate, it can't go on forever". This was a few months ago however so might have to take a 'random taxi' at some point in a few months myself!
  8. Sounds about right, re banks: it depends - retail/corporate banking earn less, around 28k-35k ish and not much of a bonus, which is about the same as your Big4 consultant types. Investment banking more: up to 50k all-in (signing bonus etc.) but still not much of a bonus for the first 3 to 4 years depending on department/function in contrast to the picture painted by the media! I have friends who moved down here straight after uni for average admin/media/sales type jobs on sub-20k and I've honestly no idea how they managed to live in London: bank of mum and dad I guess. I never would have bothered coming down from up t'north were it not for being offered a job in an investment bank.
  9. Well done mate, nice to see someone who's escaped the madness and not capitulated before it all goes boom! Hope it all works out for you and the family.
  10. Quality isn't it! "Oh sh*t, we've taken a huge, over-leveraged naked long position in one single illiquid asset class which will now be returning a negative yield ... pls help us get out of our positions without moving the market", too late: this article shows their fear, they've tipped their hand massively here. Still, there maybe a good business idea in helping these mugs get out of their positions in the next few years though not sure I'd want to catch the falling knife!
  11. haha do you know what mate, it's funny you mention that: I've got a few mates that left banking to set up a horse racing arb firm, they were making ok returns last I heard and it's tax free! I've wrote a little program to scrape bookie prices from websites and calculate arb trades (kind of a work in progress!), you have 3 problems though: bookie price feeds cost money, bookies are hiring more ex-cityboy quants like me to price their markets with computers so the arb opportunities disappear pretty quickly, and finally bookies can pull the plug on your positions/change the price at any given moment without explaination. ... anyway a bit off topic but feel free to PM me!
  12. Exactly fair point well made - just need to save a bit of dollar over the next 1 or 2 years and a business idea hmmm haha
  13. I honestly can't agree more with some of the posts so far in this thread. It's an impossible situation: you think it can't get any worse since prices for even slave boxes are insane but with people falling over each other to bid up the market and the lack of supply all the fundamentals for HPI are there so guess what happens! I work in the City writing trading algorithms for an Investment Bank: came down here a year and a half ago, working class lad, from the provinces, poor family etc. to get on my bike and make something of myself, but houses down here have earned more than even my relatively decent earning per year so there's honestly not much point anymore: that dream of working hard in life is pretty much dead when there's such a levy sucked out of the ambitious/productive economy ('coz we all need a roof right?). With returns in the grossly propped up housing market where they are (i.e. well above equity/bond/any other asset class benchmark indices) inheriting a house or two and being part of that vested interest cartel almost trumps even being a hedge fund manager or setting up your own business! Mental. I think if I don't get a promotion or two in the next few years (god knows I'll need the money down here!) then I'm offski back up north, set up a business in Birmingham or Manchester or something, if I could make 200K doing something genuinely productive up there without getting raped too much in rent (aka serfdom-tax) then I'll happily retire in Spain/Italy or somewhere nice that I actually want to live that's not full of greedy middle class baby boomer morons ... I'd only disagree about the dating scene: most women I've met down here always just seem to be looking for the next best thing all the time - give me a nice down to earth northern lass any day!
  14. Must admit, this did seem a bit strange to me: I was waiting for the numbers to be posted last week on tradingeconomics but they kept getting pushed back. Call me a cynic, but I do wonder if the numbers under the old methodology were so bad that they scrambled last minute for a new index calculation method to inflate the numbers? Was this a planned method change as I'd not seen/heard anything about it before hand?
  15. Too right! http://www.rightmove.co.uk/overseas-property/property-50500756.html, http://www.rightmove.co.uk/overseas-property/property-53366711.html What's that quote about the definition of a bubble being when market pricing bares no relation to objective intrinsic valuation?
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