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What do execution guys do in a quant hedge fund's pipeline?

Mac

Joined
10/16/15
Messages
4
Points
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  1. Seems to me that quant research (statistical analysis and playing around with data) and engineers (maintain the libraries and other software that can help the fund make $$$) are the big moneymakers in a quant hedgefund

  3. Outside HFT, what in the pipeline do execution guys contribute to?
  4. What does a day to day look like?
  5. What is their interaction with quant research?
  6. Do they sit in Quant vs mid-office w/ ops? If in ops, what is the difference between their work and ops?
Thanks
 
Poor execution management can make an amazing strategy (backtested) result in complete garbage. Understanding market structure and best execution practices are vital to a trading firms success, doesn't even need to be a quant fund. Also, if you're strategy involves trading a large amount of shares, then if you don't manage your order properly you can either sway markets negatively against you/ give away your trade to hft folks (they'll see you tryna buy/sell and then smoke you).

People pay alot of money for a good smart order router. If your execution guys can figure that out in-house, you can both save a lot as well as have more control over your order flow. I'd read about ITG and their trading algorithms for a better sense of what's going on in the execution space.

As for front office/back office, I don't really know - if you bring value to the firm (and if they are a good firm) you will get $$$.
 
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