Thanks to electronic markets, high-speed trading and intelligent algorithms, today’s buy-side trader must evolve to survive.
In the old days, the role of the buy-side trader was set in stone. The portfolio manager set the firm’s investment strategy, and the trader looked for the best trading venue, executed the trade or set of trades, and then sent off the tickets to be cleared. It was a good, honest job — the expectations were clearly defined, there was plenty of work to be done and the compensation was pretty good.
Fast forward to today, past the introduction of a host of disruptive innovations, including electronic trading, algorithms, global exchanges, dark pools and the rise of the quant. In most industries, technological leaps like these come around maybe once a decade. But in the high-speed world of trading, they all converged at once, leaving many traders scrambling to keep up.
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Tom Andorff 