UK
To the layman, product control doesn’t look particularly exciting. After all, who would be inclined to spend their days totting up the P&Ls of irascible traders whilst earning a fraction of their pay.
For this reason it’s often assumed that the throng of newly qualified accountants which floods into the City each year has been lured in on false pretences. Rather than wanting a career as product controllers, it’s they really want to be traders themselves. And recruiters stand accused of creating the misguided impression that a move from product control to trading is actually possible.
It’s something recruiters deny strenuously. “Any product controller who thinks he or she is going to become a trader is incredibly naïve,” says one senior accounting recruiter. “And any recruiter who suggests it might be easy move to move from product control to trading is unscrupulous.”
Simon Lindrea, a director at Michael Page, expresses his opinion a little more circumspectly. “It’s unusual to move from a middle office product control role into a trading role, although it does happen occasionally,” he says. “Recruiters should be clear about this and manage expectations accordingly.”
However, the former head of product control at one US bank confirms that he used to dangle the prospect of becoming a trader as a way of luring potential hires: “We had a couple of members of my product control team who moved onto the trading desk, and it was something I would mention to potential hires,” he says. “You tended to get a higher calibre of applicant amongst the aspiring traders than the would-be product controllers.”
The European Head of Delta One at Credit Suisse is an ex product controller, as one example. Although thats the only one I know, i’m sure there are others.
Sarah – An interesting question would be: What support/operations roles are the best platforms to get into a trading role? From what I’ve observed the most likely is as a Desk Developer (I saw two make the move in two years at a tier 1 US bank in 06/07.) The chances of a Trading Assistant and Product Controller making the move are significantly lower apparently. Am I wrong?
Recruiters are not to blame as they are in this game to make money, just like the traders. To be able to claim their placement fee, recruiters need to be able to hold their candidate in the role for the minimum placement time, normally around 2-6 months. What happens after that recruiters don’t really care about. In fact if candidates do leave after 2-6 months the recruiter not only has the placement fee but has another open role and a new candidate looking for a new role. What better result could they want? I think this is called ‘Churn.’ Recruiters want this churn as it is the most profitable model for them. Product control just happens to be the best place churn happens and therefore is the most profitable area for the recruiters.
In terms of job specs and the promise of front office, I think we have to turn to the author of these ficticious statements. I am not talking about the investment banks. I’m talking about the London retirement homes pretending to be investment banks. No prizes as to who these are. You only have to stand in the foyers for 5 minutes to see all these broken frames of people, head down and scowls on their faces, try to fit through the security gates..
We have quite a few ex product controllers in Sales . My boss is one of them. She moved to FO in 2005 (or early 2006?) and has done pretty well since then. Got MD last year.
I think people are looking to this the wrong way, good question to ask is do candidates really know what a trading role is when they say they want to be a trader?
The successful candidates who do move from product control to trading roles know the answer to this question and many have made the move. Several of my candidates I have placed in product control roles have made the move, not by saying they want to be a trader but by proving this with their actions.
At my firm we never mis sell sell product control roles, we inform candidates of exactly what the position is and what prospects there are for progression. it is always down to the individual to make it happen.
it really doesnt happen very often. I’ve only seen 2 product controllers move internally to Front Office in 3 years (UK bank)…and i can see why. Controllers have good analytical skills but lack the market knoweldge and contacts and dont add much value within the first 12 months on the desk. Best to apply for traders assistant roles and work really hard at a promotion.
In reference to the examples of people moving to FO from PC, what do all the dates stated have in common?
Yep, you guessed it. They were before the credit crisis. Also, they were before Jérôme Kerviel.
People it is time to take stock and realise banking has changed forever. No more easy rides through the back and middle office to get to front.
Johnnybgood’s point about Jerome Kerviel is very valid, I’ve heard it again and again from MO people that they wouldn’t be promoted as they know too much!
The head of Delta One at Credit Suisse was in fact a PC at JPM. JPM is a bank where lots and lots of Middle Office people moved to FO. The only bank I know in the City to have done that. A cheap and effective way to keep MO motivated and have a cheap entry level FO.
Agree that desk dev has much more chance than product controller, they knows the systems, the math and algos. PCs are accountants, numerate but the wrong kind of numerate for trading.
Quoted: “Recruiters are not to blame as they are in this game to make money, just like the traders. ”
A great example of everything I hate about England.
Product contron = back office
Product Control is Middle Office.