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Quantitative Finance · Glossary

What is Principal trading firm?

Definition 1.4 The Industry: Firms, Roles and Careers · Chapter 1 — A Map of the Industry

A principal trading firm is a proprietary trading firm (One Quant Book 1) in the sense the exchange-industry associations use: a firm that trades only its own capital, on exchanges and electronic venues, mostly as a provider of liquidity, and has no clients whose money it invests.

The employer taxonomy of this book: thirteen business models in four groups, and the chapters of Part I that describe each as an employer. The roles that cut across them are Part III’s.
Figure 1.1. The employer taxonomy of this book: thirteen business models in four groups, and the chapters of Part I that describe each as an employer. The roles that cut across them are Part III’s.
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