[ I N D E P T H | T A L E N T ]
“ It can be difficult to justify that one firm ’ s algo rack is better than one you ’ re currently using , so in many cases hiring people is about building relationships .”
MICHAEL HORAN , HEAD OF TRADING , PERSHING crisis saw the VP-level or middle tier ultimately eliminated as banks tried to cut costs , meaning that both the junior and senior tier were working with an increased workload . This still remains to a large degree today .
“ If that had not happened , then that mid-tier would be running various business segments and that ’ s why we have such disparity between junior and senior staff leading certain banking , research , sales and trading operations .”
For those banks which are sometimes poaching entire teams from competitors , this change in how banking hierarchies operate has worked out as a boon , and not just internally . As Michael Horan , head of trading at Pershing , points out , banks continue to fight to distinguish their services and products from rivals in order to gain new business , but hiring is another strategic method used to win new clients .
“ For most of the large integrated houses trading liquid stocks , many are alike now in terms of the technology , with very similar algorithmic capabilities and smart order routers ,” Horan says . “ So those houses are trying to get ahead of each other by hiring the right people to get new clients on board .
“ It can be difficult to justify that one firm ’ s algo rack is better than one you ’ re currently using , so in many cases hiring people is about building relationships and carrying out long-term strategies to build out the equities franchise .”
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