THETRADETECH DAILY THE OFFICIAL NEWSPAPER OF TRADETECH 2021
EDEN SIMMER : the future of the buy-side trading desk
Head of global equity trading at PIMCO , Eden Simmer , tells the TRADETech daily that as traders return to offices hybrid trading desks composed of traders with remote and physical office presence can offer a number of advantages .
What will be the main challenges for buy-side traders as they begin to return to office ? The biggest challenge for everyone returning to the office will be re-prioritising their lives as we return to ‘ normal ’. That can mean budgeting time for commuting that for more than a year had been used to spend more time with families or other activities . On the other hand , the work from home environment for some also blurred or obliterated the boundary between work and home , making it very difficult to allocate enough time to recharge . While remote trading isn ’ t perfect as it makes collaboration and training of new hires more difficult , it has been more successful than we could have ever anticipated pre-pandemic .
What does your transition back to the office at PIMCO look like ? At PIMCO , we ’ re prioritising employee safety and health , while also seeking to protect our clients ’ assets by prioritising and supporting safe trading activity . As a global firm with over 3,000 employees , we ’ ll be conducting return to the office in phases as the pandemic and vaccine rollout can look very different depending on the region .
Where we have welcomed some employees back to the office after government and local authorities have relaxed restrictions , we have adopted a gradual , phased approach to ensure the safety of our employees and because we recognise that this a fluid and evolving situation and that each location has unique challenges . In addition , PIMCO has put in place tools and resources that are designed to promote connectivity , across and within teams , and support employee wellbeing as we adapt to the new working environment , whether in the office or working remotely .
Can hybrid buy-side trading desks be as successful as centralised dealing desks ? This is going to be an area of debate throughout the industry as firms look at the experience of the last year and assess the trade-offs of flexibility versus a deeply imbedded culture of collaboration on a physical trade floor .
Hybrid trading desks that are composed of traders with both remote and physical office presence can offer a number of advantages
“ A hybrid trading desk model could lead to higher morale , more motivated and efficient trading teams and increased productivity .” particularly in terms of recruiting and retaining high performers who need or want more flexibility . For these traders , a hybrid model could lead to higher morale , more motivated and efficient trading teams and increased productivity . However , it would be essential for managers and companies to be fair and balanced to the entire team in a hybrid trading desk model for it to be successful .
It is also worth mentioning that the true stars of the pandemic have been technology , human resources , compliance and operations teams in supporting the shift of trading floors and workflows from physical to remote locations . I expect innovations in these areas to continue to advance efficient collaboration of a hybrid buy-side trading desk framework .
What are the benefits of having a diverse workforce on the buy-side trading desk ? Bringing together a team with different perspectives , skills and insights promotes creativity , innovation and strategic problemsolving . We believe traders from diverse teams make better decisions by sourcing from a wider range of industry experiences , which can result in more efficient processes and improved execution outcomes that help to drive an increase in overall performance .
We have all seen studies performed where diverse and inclusive teams often outperform teams made up of workers from similar backgrounds . In addition , future generations are prioritising diversity , inclusion , mental health , happiness , and work life balance in their employment decisions . To attract and retain top talent , companies and managers need to be cognizant that what was important to candidate pools a decade or two ago has fundamentally shifted . Now , employees often feel more comfortable and happier in inclusive work environments that recognise unique contributions .
20 THETRADETECH DAILY