| Topic Name: |
Foreign Exchange Trading VS Corp. Fin. |
| Message Name: |
Reply |
| Date Posted: |
12/02/2002 |
| In Reply To: |
Can anyone give me an idea of the culture and the people in FX trading in SSB NY?
I am currently struggling whether to join corp. fin. and FX Trading. I know this is a very fundamental choice, but please give me whatever advice you think useful. Thanks! |
| Message: |
Fresh Graduate,
My take is a bit different than keenphilosopher, but we both take a similar view. I spent 5 years as a senior manager in FX trading and know SSB very well.
First, FX trading ain't what it used to be. Two major events have severely damaged the industry for traders. First, the implementation of the Euro dollar changed the face of FX trading forever. It took 11 legacy currencies that were previously traded against the dollar and bundled them into one position. As a result, FX traders who previously enjoyed a career as a position trader were dumped. There are many, many traders who experienced getting downsized and having positions eliminated, including SSB. Once upon a time, a trader could do their time managing positions in the currency of their choice and maybe get to the point of being a market maker at a money center bank. Those days are gone..
The second event that forever changed FX trading is the Allfirst scandal by John Rusnak. Traders are under extreme scrutiny by auditors and regulaters. Spec trading has been reeled in and only the most experienced traders now get to play the game. Junior traders simply watch positions, market events and give the info to senior traders or mgmt to make decisions. The wild, wild west excitement that comes from trading has been muted.
I have some knowledge that SSB has already begun to cut back some of its FX trading operations. There still may be some opportunities for junior level positions, but it's not going to give you the base knowledge you'll need after B-school.
On the treasury side, it may not be the most glamorous route to take, but it is becoming more prestigious in many banks. The key mantra in banks is fee revenue and treasury makes a boatload of it. It can never hurt to be in a position where you are in front of the client. I think you learn much more that way. Get to know what makes the client's business tick and you'll make much better decisions.
Hope this helps. Good luck.
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