THETRADETECHFX DAILY from the floor
“ Looking at current trends and how the future is shaping up , there will be a reduction of workforce at the trading desks .” relevant . Hiring will likely become a lot more expensive . New grads will probably be hired from summer internships or similar programs where we can evaluate individuals over a longer time horizon . Finding well-rounded candidates for trading roles will be very difficult with short hiring processes . terrain expert ; giving more responsibility and freedom only brings the very best of people as far as the firm ’ s mission is clear to everyone in the organisation , which is the case of NBIM – with the added advantage of having a common goal .
As a trader , this ownership can mean taking full responsibility for an asset class and / or a region . This includes managing counterparty relationships , overseeing internal processes , making key decisions , and communicating across various stakeholders . Effectively , you own a start-up within a larger organisation . This setup naturally drives innovation , improves how things are run , and maximises returns . Because of this , I believe that firms with a flatter structure are better positioned to foster ownership and hence develop successful domain jack of all trades .
Additionally , rotations or secondments across all seniority levels have been widely popular and highly effective tools . They not only support the development and futureproof our workforce but also cross-pollinate best practices . This exposure to different parts of the business helps traders develop a broad skill set and a deep understanding of the entire trading operation .
The other aspect is how do we recruit domain jack of all trades . It is obvious that the old-school interview rounds , and brain teasers and esoteric questions are no longer
How do you expect traders to adapt to software engineering requirements in the future ? The claim that traders will speak the language of software engineering is becoming increasingly true . However , it ’ s essential to understand that software engineering encompasses much more than just programming . While AI might handle the bulk of coding tasks , there will always be a need for scripting and integration . If we consider the trader as the conductor of an orchestra of AIs , the need for software engineering becomes much more apparent . The trader , as the domain expert , will need to resort to engineering principles to design and aid in the development of trading workflows and systems .
Traders of the future will need to develop a robust understanding of engineering principles to collaborate effectively with technical teams and machines . This shift will enable them to design , develop , and manage complex trading workflows , leveraging the full potential of AI and automation . As the conductor of an orchestra of AIs , the trader ’ s role will evolve to integrate technical expertise with market knowledge , driving innovation and efficiency in trading operations .
In your Oxford style debate , your opponent is arguing AI will fill the role of coding and traders will go back to the phones – what do you think will happen ? I think Armon-Jones uses the phone as an analogy for the business getting even more relationship based . With increasing process and decision-making automation in trading , I cannot see this evolving in that direction - unless the trader makes a script to instruct the systems to route volume based on what broker took him / her out for lunch that week , in which case the trader would need to know how to program !
If voice trading is supposed to save the role of the traditional trader , we should see this role growing significantly over the next couple of years . Unfortunately , the opposite is true . Looking at current trends and how the future is shaping up , there will be a reduction of workforce at the trading desks . When that reduction of personnel required to run a trading desk becomes its minimum , it will converge to the trader as the conductor of an orchestra of AIs or the “ domain jack of all trades ”. It sounds scary , but also it opens lots of exciting possibilities and new roles in the industry .
The official newspaper of TradeTech FX 2024 TheTradeNews . com 23