Why Wall Street Traders Are On The Decline

21

Buying and selling stocks or bonds used to happen on the phone, in person, or in the packed trading pits in Chicago, New York and London. Prestigious investment banks boasted of trading desks the size of football-fields. Now, they’re losing money on trading operations and laying off scores of traders.

The number of trading, sales and research jobs at the Top 12 banks in the United States have dropped precipitously in the last nine years. In 2010, those big banks employed about 21,000 people who worked in equities — or stocks — and 27,800 people who worked with fixed income, or bonds, according to research firm Coalition.

By the third quarter of 2019, those banks employed about 16,000 people in each category, a drop of about 5,400 jobs in equities and nearly 11,600 in bonds.

The shift to electronic trading and passive investing are big culprits behind the trend. Now more and more big Wall Street names are finding it harder and harder to make money from trading. The rise of passive investing and algorithmic trading are squeezing profits in the trading business to razor thin margins. So what’s happening to Wall Street’s once prestigious trading profession?

CORRECTION (February 20, 2020): At 2:55, David Weisberger’s former role at the New York Stock Exchange was mischaracterized. He worked on trading automation on the NYSE floor.

» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic

About CNBC: From ‘Wall Street’ to ‘Main Street’ to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.

Connect with CNBC News Online
Get the latest news: https://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC

#CNBC

Why Wall Street Traders Are On The Decline

source

21 COMMENTS

  1. Nigeria's other natural resources include natural gas, tin, iron ore, coal, limestone, niobium, lead, zinc and arable land, that you can invest into in Nigeria do well to come buy and also invest in civil engineering also they are company that for sell in Nigeria you can meet Asiwaju Tinubu Bola Amhed Nigeria President..

  2. Banks know FIAT currency is WORTHLESS! Something else banks KNOW but will never admit is they themselves are now also WORTHLESS thanks to cryptocurrencies like Bitcoin, Ethereum, DOGECOIN, etc… You'll see a HUGE rotation out of stocks and into crypto in the coming months causing an inverse effect on their prices. Dinosaurs like Buffet and Munger just don't understand and need to be forgotten.

  3. I recently came across a research report highlighting the impact of regulatory changes on the industry. It provides an interesting look at how regulatory changes could impact the stock's future growth. If you're interested, we can discuss it. Have you considered these regulatory factors in your analysis?

  4. never had any confidence in that field of making money? no different than gambling however it was interesting part of society too bad it is dying out. i knew that would happen with all kinds of fraud never understand how traders made a living?

  5. Its because it's a church built up on a human victim reason (House of Paula) and now that they're dying of age and the victims family is wrecked, nobody sees it important to prop the family for wearing our babes on these walls with no rescue for their never tending to the littlest grey test ever. Fin the kitchen sink pipe and the floors and fix it, please.

  6. Kayo lang po ang kumita sa ginawa ko nayan ako nahusgahan at nasira sa laro nayan lahat pinakilaman ninyo sa buhay ko dahil sa laro nayan sagad ang pag hihirap ko dahil sa ginawa ninyo sa buhay ko kayo kumita at ungat qg kompanya kc matalinu kayo kayo may gawa ng laro nayan hd ako ng laro labg ako at humingi ng suporta para wag masira ainira ninyo buhay ko dahil sa laro nayan hd naman ninyo ako kinausap dahil sa laro nayan lahat sinabiko ginawa ko sa laro nayan ako ang sirang sira kayo po matagal nang mang lalaro hd ako ako sinira ninyo sa laro nayan kakahiyan ako hd kayo

  7. 0:30 making markets in stocks and connecting buyers and sellers using the telephone.
    1:15 trading desk layoff.
    global equity trading. because of the passive algorithm trading.
    3:00 a settlement between Nasdaq to collude to fix the price.
    4:20 electronic communication networks, personal computers, increased trading pit.
    8:45 the market makers.
    12:00 banks move into other higher margin areas within their business models. driven by tax and technology advances.
    13:25 trading future: have a quantitative background.

  8. The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.

  9. Year-over-year inflation stood at 6.5% in December 2022—the lowest that figure has been in more than a year. Inflation was in line with what economists expected and gave many of them a reason to believe that the peak of inflation may be behind us. I have approximately $150k stagnant in my port_folio that needs growth. What is the best way to take advantage of this downturn?

Comments are closed.