Buy-side to add equities traders

Equity trading jobs have fallen dramatically since 2000, but according to one consultancy they're on their way up again.

"I would estimate that the industry will add 300-500 equity trading positions over the next two to three years," says Robert Hegarty, managing director of the securities and investments division of U.S-based TowerGroup. "Declines in the number of sell-side equity trading positions will be offset by additions on the buy-side, both at traditional asset managers and hedge funds."

Hegarty says buy-side jobs for equities traders are being created on the back of increased buy-side trading activity and increased quantitative trading. Nearly all the new trading jobs will have a significant quantitative element, he predicts.

TowerGroup estimates that the number of U.S. equities traders has fallen 18% since 2000, at the same time as trading volume has risen nearly 200%. The reduction in staff numbers has been facilitated by the growing use of electronic trading systems.

The buy-side may not be the only place adding equities traders. David Korn, European managing director of search firm Options Group, says investment banks have now finished cutting cash equities traders in response to the introduction of electronic trading systems and are looking to add staff in the area.

But he says they're looking for a new skill set: "Banks are looking for technical and quantitative cash traders, who can work across areas. They do not want the traditional sector-specific cash trader any more."