CoachA head of desk is the person who runs one trading desk: sets its strategy within the firm’s risk appetite, allocates its limits and capital among its traders, answers for its profit and loss, its risk and its people, and agrees its revenue budget with the business’s management.
Exemplos
Example 25.3 (Making partner)
Illustrative terms: firm profit normal with mean $300 million and standard deviation $200 million a year; 30 partners with 100 points each; the new partner receives 30 points and contributes $1 million; 60% of each positive share is drawn; three more partners of 30 points are admitted in year three. Over five years the new partner’s expected draws are $8.93 million (10th–90th percentile $5.79–12.14 million), and their capital account is expected to reach $6.67 million, with a 5th percentile of $3.32 million. In 9.4% of paths the capital account falls below the contribution at some year-end. Against a salaried head of desk at $1.2 million a year, the draws alone break even at about 20 points, 0.66% of the partnership (Figure 25.1).