Treasury Trader

farva

I'm interested in a career in trading and I was just wondering what exactly a treasury trader does? I know what a prop and sales trader do. Would it be a case that they just trade products to hedge the banks risk/exposure to certain markets, such as fx, futures and swaps rather than equities, options and commodities like a prop trader may. Are there any other ways that treasury traders differ from prop / slaes traders?

And how would treasury trading salary compare to prop trading?

Thanks.

TheBazman

Depends on where you're thinking of say Dublin or London. In Dublin you would be more of a jack of all trades - probably start off on a graduate programme learning a bit about everything really. Then if successful you would be put onto a desk whereby you would most likely be involved in say day to day balance sheet management, assessing assets to buy, structuring the best part of the curve to source your liabilities. Combined with this you would be prop trading so you would have your own targets to make in order to achieve budgets and hopefully bonuses. You would most likely be trading interest rate futures/derivatives or fx.

If you wanted to purely prop trade (ie) no balance shee mgt, you would need to build up experience first to prove that you could be successful.

If you're talking about london then you would be more specialised - Eg you could be responsible for trading just Euro denominated interest rate swaps with a maturity of between 2 and 5 yrs

dunkamania

Where I work now treasury guys fund our positions through swaps/repo,deposit short term cash at the best possible rates,and handle marginc calls.Where I used to work,prop traders were engaged in deriving arbitrage and programme trading strategies.