Advanced Trading
       December 2007

Demand for Quants Surges as Trading Requires More Math and Programming Skills

Cover Story:
Demand for Quants Surges as Trading Requires More Math and Programming Skills
With the growth in high frequency trading, there is increased demand for quantitative analysts with PH.Ds in math or computer science to program models, develop trading strategies and work with databases. But luring quants to Wall Street still can be a challenge.

Broker Parity Energy Is Building An Electronic Trading Platform for Energy Derivaitves
Parity Energy CEO Charles Reyl is tapping into his quantitative background to build liquidity for a new energy derivatives trading plaform.

Achieving Alpha: How Do Traders Do It?
Buy side traders seek to achieve alpha in many ways, including setting up up long-short funds.

2008 Outlook:
Exchange Consolidation Wave Is Expected to Continue in 2008
U.S. exchanges are seeking mergers overseas and looking to consolidate with U.S. regional exchanges to diversify into multiple asset classes and cut technology costs.

Wall Streeters Make Predictions About Exchange Mergers
With exchange consolidation in full swing, there is no shortage of predictions on The Street for more activity. These are some of the predictions made by various industry traders and analysts.

The Buy Side Raises Issues With Fragmentation, Data Traffic and Execution Systems
Will 2008 be a year of clarity, as Freestone Capital's Nenad Yashruti hopes? From the fragmentation of markets and the lack of transparency in algorithms to skyrocketing data volumes and execution systems, Yashruti and other buy-side traders are hoping to find solutions in the coming year.

U.S. Algorithm Spending Slows
Spending on algorithms has hit a plateau. But will more-sophisticated offerings in 2008 lead to renewed growth?

Growing Dark Pool Trading Volume Could Be Problematic for Exchanges
As dark pools become a staple routing destination and their overall share of trades in the market continues to climb, how will they continue to evolve, and what does it all mean for the future of traditional exchanges?

Market Intelligence:
Trading Bonuses: What Can You Expect To Bring Home This Year?
With the credit crisis battering fixed-income desks and quantitative hedge funds, Wall Street traders are going to see their bonuses shrink in 2007 as firms recover from the turmoil in sub-prime mortgages and position their desks for 2008.

U.S. Trading Technology Spending Slowed in 2008 by Credit Crisis
U.S. spending will slow in the coming year, but growth is on the horizon abroad.

From The Editor:
Good Or Bad, Technology Is Allowing Firms To Offer Multiple Services Originally Out Of Their Traditional Scope
Trading firms and exchanges are trying to be all things to all people. Will the pendulum start to swing back to the speciality model?

Traders' Forecast:
Credit Suisse's Dan Mathisson Predicts a Cheaper, Faster and Cleaner Trading Landscape for 2008
Dan Mathisson, Managing Director of Credit Suisse's Advanced Execution Services, says the trading landscape for 2008 will be cheaper, faster and cleaner than ever before.

Sawgrass Asset Management's Timothy Christiansen Says More Light Will Be Shed on Dark Pools
According to Timothy Christiansen, Equity Trader with Sawgrass Asset Management, the industry will see more transparency into dark pools in 2008.

Delaware Investments Joseph Rogina Says Commission-Sharing Arrangements Will Have a Lasting Impact on Trading
According to Joseph Rogina, an Equity Trader with Delaware Investments, while many industry buzzwords don't live up to the hype, the impact of CSAs will be felt for years to come.

Accipiter Capital's Bryan Kievit Predicts That Commission Compression Will Continue and Liquidity Will Reign Supreme
As commissions continue to compress, Accipiter Captial Management Head Trader Bryan Kievit offers insight into the future of the sell side and how it can garner value in ways other than hard dollars.

Michael Crockett, Senior Equity Trader, Brazos Capital ManagementThings We Love and Hate about Trading
Advanced Trading asked buy-side traders what it is they love (and loathe) about trading.

"I love that every day on the desk is different than the day before"

- Michael Crockett, Senior Equity Trader, Brazos Capital Management

For more perspectives, visit

Street Cred
Are Brokers Threatening Buy Siders to Increase Flow?
As buy side brokers decrease the number of brokers they use, sell siders are placing new demands on the buy side. One is send more of your flow to us or risk losing our top tier services.

At The Close:
Ivy Schmerken, Senior Editor, Advanced TradingQuants Caught Off Guard During the Credit Crisis
Models developed by quantitative hedge funds didn't work during the credit crisis. Are the quants to blame for the market turmoil?