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Behind the Money

Wall Street’s new trading titans

Behind the Money

Topher Forhecz

Markets, Investing, News, Banking, Finance, Business, Business News, Crypto

4.4350 Ratings

🗓️ 16 October 2024

⏱️ 21 minutes

🧾️ Download transcript

Summary

When it comes to trading, Wall Street’s investment banks are falling further behind. And independent trading firms, such as Jane Street and Citadel Securities, are taking the lead in everything from stocks and options to derivatives and crypto. The trading firms argue that they’ve made the process more efficient, but what risks does that carry? The FT’s US banking editor Joshua Franklin explains.   


Clips from Lionsgate

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For further reading:

New titans of Wall Street: how trading firms stole a march on big banks

New titans of Wall Street: how Jane Street rode the ETF wave to ‘obscene’ riches

‘King of the geeks’: how Alex Gerko built a British trading titan 

The limits of bond market electronification

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On X, follow Joshua Franklin (@FTJFranklin) and Michela Tindera (@mtindera07), or follow Michela on LinkedIn for updates about the show and more.


Read a transcript of this episode on FT.com 



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Transcript

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0:00.0

BP is working to bring more lower carbon energy to the UK, like developing offshore wind,

0:06.1

and we're keeping oil and gas flowing from the North Sea. It's and not all. That's how BP is backing Britain. Well today we're mostly in oil and gas.

0:16.0

We increased the proportion of our global annual investment that went into our lower carbon and other transition businesses from around 3% in 2019 to around 23% in

0:26.0

2023. VP.com slash and not all. Do you remember the movie Margin Call? It's from 2011 and it's all about the beginning of the financial crisis.

0:41.0

And there's this one scene that's been on my

0:43.9

colleague Josh Franklin's mind recently.

0:47.0

City, this is Eric.

0:50.3

Give me Elliot. There's a really memorable scene in the movie where you see the trading floor of this

0:56.7

unnamed investment bank where the executives have made the decision that the bank is going to try to unload these toxic mortgage-backed

1:06.6

securities that the bank is holding.

1:09.9

And you see the role of traders trying to unload this stuff across the street.

1:17.3

Now as you listen, pay close attention to how these traders are talking on the phone.

1:21.8

Jesus, where does this land?

1:25.0

96 on a dollar.

1:26.0

91.

1:27.0

All three and we're done at 94.

1:28.0

93.

1:29.0

Done.

1:31.0

They're cooling up people that they know at other firms and selling this stuff at cut price deals.

1:40.0

Hello gorgeous.

1:41.0

Well, what's happening over there? Well, today's movie.

1:44.0

You can hear kind of the conversational tone and the personal relationships that matter in the

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