Dave Haan
aka nnyhav
- Joined
- 11/19/08
- Messages
- 72
- Points
- 18
There is currently movement on the sell-side for quantitative modeling to be configured under a separate reporting line, rather than associated with specific business lines or within information technology.
This is significant, not only as a response to the perception that modelers became captive to business interests, but also in that BFE (before financial engineering) internal research departments were more of a standard within the industry; these were largely folded into biz or tech (or both) during the 90s (partly cost control, partly that internal and external research were mixed and the latter was compromised).
Good news / bad news: while securing the continuing need for quants, it will make any transition into trading more difficult for those who see modeling as a waystation rather than a destination (ntm lower beta).
This is significant, not only as a response to the perception that modelers became captive to business interests, but also in that BFE (before financial engineering) internal research departments were more of a standard within the industry; these were largely folded into biz or tech (or both) during the 90s (partly cost control, partly that internal and external research were mixed and the latter was compromised).
Good news / bad news: while securing the continuing need for quants, it will make any transition into trading more difficult for those who see modeling as a waystation rather than a destination (ntm lower beta).