Riskless, you say that the opportunity is potentially in the fixed income options. How can an individual trader take advantage of this potential. Move to Chicago, apply for an option seat and be on the floor? That would go against the huge tide that is happening in the marketplace today-slow migration to electronic platforms and floor marketmaking onto black box automated systems? How can you reconcile the two opposing ideas.
RE> and that the place to be is Making Markets in Fixed Income Options. A 44 year low in Yields with some of the Biggest players out of the Market will allow independent traders an opportunity of a lifetime when the Fed starts to Hike. In Fixed Income Options, there is nothing like a Crashing Market. 1993 and 94 was the last significant setup like this. Interested in comments! ============================================== Riskless.... As GATrader asked also....I want to re-iterate and expand, how do <you> see the independent/retail trader exploiting this opportunity? I am especially interested in that the trading firm I have joined has a seat on the Pacific Exchange (PCX) and we can exploit that to put on exotic or well developed derivative strategies and I am very keen to make use of that feature of our firm? Can you expand on this, or feel free to PM me your thoughts. Looking forward to your response, J-
Jester and GATrader, I am sorry for the confusion. When I say that it is a Good time for the Fixed Income Market Making community, I am mainly talking about Institutional traders or traders that are working within a fairly well capitalized trading firm. There are several posters on ET that this would apply to, but I don't think that the retail trader can capitalize on it without a great deal of risk. Riskless
Here's an article on Bloomberg magazine about the booming FI market and traders. http://www.bloomberg.com/marketsmagazine/cv_0303.pdf trader99
GOLDMAN GETS NO PITY FROM ME -- AS A FORMER INDEPENDENT ON THE PACIFIC , GOLDMAN WAS BENT ON DRIVING GUYS LIKE US OUT. THEY SUCCEEDED, AND NOW IT'S THEIR TURN. i HEAR MORTGAGE COMPAINIES ARE HIRING...
You can type the way I am typing this post and the same message will come across, albeit with less screaming. Unless this post was meant for people that read large print books? nitro
The street has always had cyclical employment: This is nothing new. However I do agree with the thesis that fewer people are needed now than in prior years due to technology improvements. Over the next several years we will seee more job elimination / consolidation due to technology. Those of us who stay on the technology curve and adapt will still be here .... ..Maybe not the smarter brother but he certainly hit the nail on the head: if you can describe your job its already obsolete. Owning proprietary knowledge (it can just be your own expertise ) and keeping it proprietary is how you stay in business and in control ....