Wall Street’s thorough infiltration by technology has spawned a new occupational niche known as high frequency trading jobs. High frequency trading (“HFT”) enables the execution of millions of securities exchanges in less than one-millionth of a second. High-tech innovations were once regarded as job-robbers worthy of full restraint. In the world of high finance as elsewhere they are now fully recognized as sold career creators.
Popular perception notwithstanding, “total automation” is a misnomer. Computers and software are mere products of human invention and ingenuity. While true that technological advancement has rendered jobs such as pit traders obsolete, new positions far outnumber old ones. Below are just a few of the large cast of human characters working diligently behind the scenes of HFT.
Quant
Short for quantitative analyst, a “quant” denotes someone with advanced training in high-level mathematics and statistical methodologies. Quants devise the algorithmic programming formulas that are the “heart” of any HFT platform. Quants’ primary organizational role function is trader support and product development for new financial instruments.
In addition, quants must continuously modify HFT algorithms and develop new analytical models to identify and screen short-term investment opportunities. Almost invariably, quants hold PhDs in a scientific field such as Physics or Engineering. Former university professors are frequently targeted for these lucrative positions.
Money managers
Pooled fund investment vehicles such as mutual funds have become very popular among investors. In fact, the combined number of mutual funds now approaches the sum-total of all publicly traded firms. High-caliber finance professionals are essential for efficient asset management so as to maximize investment yields.
Competent money managers possess strong analytical skills and a highly attuned sense of general market trends. In high frequency trading firms, money managers work long hours in fast-paced environments. Finance degrees and CFA certification are credentials for professional money managers.
Systems Liaison
These people form the vital link between the business and technical aspects of HFT operations. Systems liaisons must adequately comprehend project business objectives and convey them clearly to IT personnel. Likewise, liaisons must have enough technical expertise to properly advise financial staff of all available HFT options and optimal high frequency investment strategies. Departmental comptrollers often act as HFT systems liaisons.
Other high-frequency trading jobs include personnel managers and various administrative support staff. Heightened regulatory scrutiny of HFT has even led to more jobs for legal professionals. Concerns over a potential negative long-term impact on market stability and emerging doubts about HFT’s true profitability have created more jobs for economists, statisticians, and related professions.
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