Prop traders top hiring agendas
Despite apparent hiccups in Goldman's proprietary trading business, one recruiter says banks' zeal for adding proprietary trading talent remains undented.
"All proprietary trading businesses are trying to hire," says Russell Clarke, a director at search firm Mantis Partners. "There's particular demand for people to trade debt-related products for emerging markets, as well as structured credit, single name credit and interest rate volatility products."
Third-quarter results at Goldman Sachs revealed that revenues from its trading and principal investments division fell 8.5% between the third quarter of 2005 and the third quarter of 2006. Forbes says the bank attributed much of the decline to its proprietary trading activities.
However, Clarke says banks are still enthused about the performance of Goldman's prop trading division 12 months ago. "Goldman Sachs reported that 60% of their profits last year came from proprietary trading activity. Banks are seeking to capture those profits. If Goldman didn't do so well in the last quarter it will make no difference to hiring."
German bank Dresdner Kleinwort scrapped its London equity proprietary trading desk in July, but banks such as Credit Suisse, ABN AMRO, Deutsche Bank and Morgan Stanley are understood to have been in the market for prop traders this year. Barclays Capital is reportedly launching proprietary trading desks for credit derivatives in both London and New York.
Clarke says the most sought-after candidates are technical mid-level prop traders. "Banks are looking for traders with a minimum of four years' proprietary trading experience, or 10+ years' experience running soft books," he says.
