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What are the differences between back-office and front-office positions?

bordin

Joined
10/8/10
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14
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After I've been reading this site for a while and I don't really understand some special terms used in the quant society, the two terms on the topic for example. Can someone explain me what they are? What kind of jobs do those two positions usually do? What are the deferences between them? Why is the back-office position usually considered worse (or maybe less exciting) than the front one? Thanks every input in advance :)
 
Back office position isn't considered as worse but you can say less exciting(if you refer to it as tedious and tiring). Front office worker (like operator, cashier, etc) directly deals with customers. Back office worker (like risk manager, CFO, etc) sets the company guidelines, policies, etc and are not directly contacted to clients.

For more info:

http://en.wikipedia.org/wiki/Front_office
http://en.wikipedia.org/wiki/Back_office
 
I think the basic difference is that in a front office job, you execute and implement the algorithms for trading and interact directly with the system in place while a back office job is more related to research and development of the trading strategies.
Correct me if am wrong .
 
achilles said:
I think the basic difference is that in a front office job, you execute and implement the algorithms for trading and interact directly with the system in place while a back office job is more related to research and development of the trading strategies.
Correct me if am wrong .
Click to expand...

R&D can be MO and FO depending on the firm. QR is usually close in connection with the trading desk. Back office is usually processing of trades, maintenance, operations, tech support, etc. MO is usually risk research, reporting, and maybe at some firms risk management although many firms have risk-desk coverage as part of FO. Analytics can be back office, or middle office. CVA and similar desks are MO usually. etc etc
 
achilles said:
I think the basic difference is that in a front office job, you execute and implement the algorithms for trading and interact directly with the system in place while a back office job is more related to research and development of the trading strategies.
Correct me if am wrong .
Click to expand...

Right you can say so. The main differences are put into Front/Back sequence: Direct/indirect interaction with clients, executing/setting company goals, direct/indirect involvement in R&D, etc.
 
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