I like equities systems because
* latency – upstream
* algo – upstream
* connectivity – upstream
* messaging – upstream
* technology-wise, upstream to FX, rates, treasuries…
I like derivatives (esp. options) because
* math, pricing. More mature and entrenched than other derivative instruments – upstream
* m-risk. Non-derivative positions go flat soon. – upstream
* life cycle management
These are mature products and mature technical implementations. Ahead of the curve.
– IRS is extremely popular (even in Asia) and growing, but volume and math is “downstream”.
– CDS is low volume. Mathematically, I still feel option pricing is upstream.
– Mortgage is big business, but not in Asia.