| Topic Name: |
Best Prop trading desks |
| Message Name: |
The salesperson is t |
| Date Posted: |
02/28/2000 |
| In Reply To: |
JJJ,
Thanks for the info. on proprietary trading.
Could you tell me how the whole sales and trading process works. I know inst. salesman sell and traders trade, but what is the actual process. For example, let's assume an inst. salesman talks up some stock to one of his clients. Later in the day, the client decides he wants to buy a block of the stock. Does the buy side trader then call the sales trader or does the fund manager/analyst call the inst. salesman who then calls the sales trader? What's the actual sequence of events in an equity sale and trade?
I assume also because buy side firms spread their trades around that an inst. salesman may give one of his clients a good stock idea but that the client will then buy from another firm. |
| Message: |
The salesperson is the point of contact for the client. A trader doesn't want to have to deal witht the clients calling in everytime to discuss trade ideas or get a quote. Dpeending on the product, the salesperson's role will vary from very transactional to more of advisory and structuring. The former is for markets where products are relatively simple. Here the role of the salesperson resembles that of the trader in that he quotes prices over the phone and might close the transaction. Of course the trader is the one buying so the salesperson is the true intermediary. Depending on the client and trading history, the spread might be tighten or moved in favor of the client. Obivously this hurts the trader's profits.
Typically, the inst investors call up several places to get quotes. The one with lowest (highest) prices sells, investor buys (buys, investor sells). If its a large order likely to move the market, it might be split.
Most investors have direct lines to banks and each salesperson know which clients to deal with.
The role of the salesperson is less defined but as mentioned above, he is the point of reference to the firm's resources- trading, research.
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