- Seems to me that quant research (statistical analysis and playing around with data) and engineers (maintain the libraries and other software that can help the fund make $$$) are the big moneymakers in a quant hedgefund
- Outside HFT, what in the pipeline do execution guys contribute to?
- What does a day to day look like?
- What is their interaction with quant research?
- Do they sit in Quant vs mid-office w/ ops? If in ops, what is the difference between their work and ops?
What do execution guys do in a quant hedge fund's pipeline?
- Thread starter Mac
- Start date
- Joined
- 12/3/14
- Messages
- 24
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- 13
Poor execution management can make an amazing strategy (backtested) result in complete garbage. Understanding market structure and best execution practices are vital to a trading firms success, doesn't even need to be a quant fund. Also, if you're strategy involves trading a large amount of shares, then if you don't manage your order properly you can either sway markets negatively against you/ give away your trade to hft folks (they'll see you tryna buy/sell and then smoke you).
People pay alot of money for a good smart order router. If your execution guys can figure that out in-house, you can both save a lot as well as have more control over your order flow. I'd read about ITG and their trading algorithms for a better sense of what's going on in the execution space.
As for front office/back office, I don't really know - if you bring value to the firm (and if they are a good firm) you will get $$$.
People pay alot of money for a good smart order router. If your execution guys can figure that out in-house, you can both save a lot as well as have more control over your order flow. I'd read about ITG and their trading algorithms for a better sense of what's going on in the execution space.
As for front office/back office, I don't really know - if you bring value to the firm (and if they are a good firm) you will get $$$.