Goldman Sachs, JPMorgan Strengthen Algo Trading Units With New Hires

Despite the traditionally slower hiring periods in the summer months, both Goldman Sachs and JPMorgan have bucked this trend, adding new personnel, according to a report from eFinancial Careers.

This includes senior talent in the algorithmic (Algo Trading Algo Trading Algo trading, sometimes referred to as algo, may be defined as computerized trading that employs proprietary algorithms or pre-programmed commands that are tailored to take into consideration variables like price, volume, and timing. First introduced in American financial markets in the 1970s, algo-trading is generally utilized in trading scenarios such as arbitrage, trend trading strategies, and order execution. Approximately 60% of all trades were executed by computers in 2010. Today, algo tra Algo trading, sometimes referred to as algo, may be defined as computerized trading that employs proprietary algorithms or pre-programmed commands that are tailored to take into consideration variables like price, volume, and timing. First introduced in American financial markets in the 1970s, algo-trading is generally utilized in trading scenarios such as arbitrage, trend trading strategies, and order execution. Approximately 60% of all trades were executed by computers in 2010. Today, algo tra Read this Term segment, which has quickly emerged as one of the more important areas amongst banks.

Algo trading has been an important component for many banks in recent months, with the latest hires possibly portending a drying up of supply to meet a growing demand. In any scenario, banks have been quickly scooping up top-tier talent in the algo trading arena, with Goldman Sachs and JPMorgan emerging as the latest players to do so.

Algo trading driving new hires

As such, Goldman Sachs has brought in Tim Rohkemper from Credit Suisse to serve as its Vice President in the area, based out of London. Goldman Sachs has worked on fortifying its electronic and algorithmic trading capabilities following years of lagging behind in the algo trading space.

The appeal is obvious, given the propensity for high returns in what has been a rather troublesome period for banks. Rohkempter joins Goldman's systematic trading strategies team following a period of two years in quantitative investment strategies at Credit Suisse.

JPMorgan meanwhile appointed Fabian Mehmke to a new senior role in algo trading. Mehmke joined the investment bank following a stint of five years in Deutsche Bank. He will also be serving this role out of London.

It will remain to be seen whether there is a continued uptick in hires during the latter stages of summer or into fall. As banks look to continue to improve their profitability, a natural solution could be algo trading, which has indeed stood as one of the more lucrative segments.

For example, Barclays has already been investing in electronic trading, as well as hiring heavily from Credit Suisse, and managed to achieve a 30 percent year-on-year increase in its Equities Equities Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Read this Term revenues during H1 2018.