Market Making Prop Firms

Discussion in 'Prop Firms' started by 6ptPrime, Oct 18, 2006.

  1. 6ptPrime


    I've got an interview later this week with an options market making firm that reportedly does good volume in the Eurodollar options. My question is two-fold I guess...

    First off, it seems most of these places are super-keen on bringing in guys that can work with numbers rapidly in their head. This seems to be the major determining factor in what makes a good market maker, or who fills the most incoming paper. Am I wrong? To those of you who have worked in this arena, is it ALL about how quick you are with numbers?

    Also, with the advancement in technology, wouldnt one think that these types of roles in the pits will be increasingly supplemented by algorythms that can work faster and more efficiently than a human and perform the same role in the market, but via Globex rather than outcry? I look at this niche of trading as a dying breed.

    In talking to some different prop groups I'm finding that most of the credible and highly capitalized groups (and even those who offer salaried positions) are those who have been designated by the exchanges to act as market maker in some designated futures market.

    Are these jobs dead-ends for those who can't program? The whole assistant trader progression from clerk/classroom training to "Trader" just seems like a joke with emerging technology.

    Also, I suppose one would have to literally LOVE working with numbers and be passionate about crunching numbers to be around this everyday and to work as a market maker. It doesnt seem so exciting to me. Would others agree with this assumption? What other qualities/attributes (if any) make a good market maker on the floor?

    I'd appreciate any thoughts from those who work in this arena, have worked in this arena, or have considered it.

    Thanks fellas...