In this post I will discuss with you the current and future state of all main global markets roles. Trading The headcount for trading roles has declined steeply since the financial crisis. Firstly, pretty much all prop-trading desks closed down, so that banks are compliant with the Volcker Rule. Secondly, market-making desks have reduced headcount due to the decrease in balance sheet dedicated to trading. And thirdly, the increase in electronic trading has also contributed to a decrease in trading roles across the asset classes. With the current state of illiquid markets (in fixed income most notably) and banks’ increased risk sensitivity there is less of a need for traders. Albeit, this varies from asset class to asset class, generally speaking trading roles are declining at banks. SalesWith increased illiquidity in the financial markets and with many banks refocusing on their core strengths, as opposed to trying to be wholesale investment banks, sales roles have also declined since the financial crisis. However, as both primary and secondary markets require communication with clients there will always be the need for sales people. I believe this is the case across all asset classes. Of course, the increase of electronic trading and the emergence of more electronic trading platforms means there is less of a need for large sales teams. But, nonetheless, I firmly believe that a career in sales has more longevity than one in trading at this point in time. ResearchEconomists and asset class specific research roles have, in my view, taken less of a hit since the crisis. Equity & credit research teams have been cut at various banks, but many have made the move to the buy-side, which is a natural progression for many research analysts. Furthermore, since illiquid markets are forcing investors to opt for more of a buy and hold strategy, strong fundamental analysis has become more relevant. Hence, I believe that research roles have a bright future, albeit more on the buy-side than sell-side. StructuringStructuring financial products that help corporations and investors with their risk management is currently very relevant. Especially when it includes regulatory aspects. While many exotic derivative trading/structuring roles have disappeared following the financial crisis, there is still a strong demand for less complex financial structures for hedging purposes. E-TradingElectronic trading is still a growth area for banks and has been for the last 10 years. This won’t stop any time soon. Asset classes such as spot FX, cash equities and commodities are already e-trading favourites and fixed income will be the next frontier. Syndicate/New Issues/Primary Market RolesThe primary market in fixed income has benefited from low interest rates in the last half decade, which has seen new issue desks generating serious P&L for banks. As the financial markets have become more illiquid in the secondary market and investors are choosing to buy large clips in the primary market instead I believe that primary market-related roles (Syndicate, DCM) will have a bright future in the fixed income space, while tech IPOs should keep ECM desks busy for a while. Risk & ComplianceRisk management and compliance departments have seen massive growth since the financial crisis and regulations have tightened globally. While before the financial crisis risk management and compliance was somewhat of an after-thought of many investment banks, it is now very much at the forefront of many decisions banks make. No one wants to be charged high penalty fees for breaking financial regulations. Hence, risk management and compliance careers have a bright future. While they still don’t pay as much as revenue-generating roles, salaries have gone up in recent years. Support Roles (Middle Office)Sales and trading support roles are often considered as a stepping-stone, that one does for 2-3 years, before taking the plunge into front office. If you know how your bank’s systems work inside and out, and perform well, you will likely make the jump into the front office sooner than later. Having said that, many support roles are on a temp basis and can therefore easily be replaced. So, if you end up in a support role with the aim to jump into a front office role, make sure you make yourself irreplaceable very quickly.