most market-risk (and MOST credit-risk) IT systems are considered middle office, but Kirat Singh’s presentations suggest a specialized developer role in risk/research space is more “front office” because these developers interact with quants and traders.
How do we identify such a developer position among millions of risk developer positions?
+ real time (at least intraday) risk numbers
+ job responsibility often mentions risk and pricing in one breath
+ pre-trade analysis
+ a key part of the trading strategy
+ a key part of models
+ business users are prop traders or fund managers, not agency traders
+ derivatives needs more risk management than cash products
In contrast, middle office risk systems
– are heavily batch-driven
– i feel some traders treat those risk numbers as unreliable, unlike the real time risk numbers they look at before every trade.
