Knight Capital may be sold off, Citadel may be next as HFT and hedge fund operations may consolidate or even close
This is all according to rumors found on Bloomberg TV. I find it interesting with all the technology and algos in the world, hedge funds performance is very lackluster his year. As Bloomberg says, I do think you will see the shrinking of this cottage industry with big firms. All the early innovators like Jim SImmons are retiring, it seems the institutional players will shrink or maybe even close. I do think the automated algos and systems will continue but by the little guys. There is still lots of growth ahead.
Are Bank of America and CitiBank moving global quant operations to Toronto?
I have got recently a few blasts from local Toronto recruiters who are helping me identify a startling trend for any quant based person. As I am fairly new to the world of quant, it may benefit me as both large banks are moving their operations. As it has been explained to me, these local recruiters are being told that upper management at both Bank of America and Citi Bank are moving a large hub of their trading desks and quant roles to Toronto. It is cheaper for. The rates I have been told are fairly low as compared to London or New York City.
For instance, many ‘experienced’ quants are expected to settle at ninety dollars per hour which rounds out to $150,000. I am sure New York or London based quants could make double in their own home towns. For a light experiences guy like me, it seems I could get $110,000. Not bad but still about two thirds of what is being paid in both New York or London. It seems it would be cheaper. I am sure their rents are as well.
I have always known Citi to have a downtown Toronto office on Front St., but I have been told their Mississauga location on Matheson Blvd is too small. They are now looking for over 100 people on a new building on Hurontario. This to fill a few new groups that appears to make this location a major support hub for Citi`s global operations. This includes two platforms built in Java using WebLogic for their Prime and Municipal Bonds groups. These will be large groups which are being built from `scratch.` Citi will also pay premium for these roles as compared to cheap ass Canadian banks like Bank of Montreal or Scotia Bank. These are apparently the other second and third largest in Toronto region. For example, Canadian Toronto Dominion bank would $70k for a similar role. That is very low for a similar role in London. Most of Citi`s local Toronto positions are being fulfilled by local Canadian recruiters only. They are also only looking for Canadian who has working status as well. That is an extra bonus for people like me where the market is much tighter for Citi as the local based quants are hard to find.
As for Bank of America, they are setting up their local downtown Toronto location with a boatload of roles to. One other recruiter has confirmed for me that Bank of America`s Merrill Lynch division will use Toronto as a new hub for new future quant based projects. For what reason, it is cheaper.
So is Toronto becoming potentially a new global player in the world of quant?
So be on the look out for a extra tips on getting interviews for both Bank of America and Citi Bank. This includes Java roles and C++ quant based roles. Man, will this be interesting and time consuming. No different than the research for Bloomberg. Oh yeah, I better get back to this prepping for their online test today.
NOTE I now post myTRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!