Why Wall Street Traders Are On The Decline

Share it with your friends Like

Thanks! Share it with your friends!

Close

Buying and selling stocks or bonds used to happen on the phone, in person, or in the packed trading pits in Chicago, New York and London. Prestigious investment banks boasted of trading desks the size of football-fields. Now, they’re losing money on trading operations and laying off scores of traders.

The number of trading, sales and research jobs at the Top 12 banks in the United States have dropped precipitously in the last nine years. In 2010, those big banks employed about 21,000 people who worked in equities — or stocks — and 27,800 people who worked with fixed income, or bonds, according to research firm Coalition.

By the third quarter of 2019, those banks employed about 16,000 people in each category, a drop of about 5,400 jobs in equities and nearly 11,600 in bonds.

The shift to electronic trading and passive investing are big culprits behind the trend. Now more and more big Wall Street names are finding it harder and harder to make money from trading. The rise of passive investing and algorithmic trading are squeezing profits in the trading business to razor thin margins. So what’s happening to Wall Street’s once prestigious trading profession?

CORRECTION (February 20, 2020): At 2:55, David Weisberger’s former role at the New York Stock Exchange was mischaracterized. He worked on trading automation on the NYSE floor.

» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic

About CNBC: From ‘Wall Street’ to ‘Main Street’ to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.

Connect with CNBC News Online
Get the latest news: https://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC

#CNBC

Why Wall Street Traders Are On The Decline

Comments

AHIABA JOY says:

So many traders are afraid and confused different testimonies, different managers and still yet they still lost their money in the hands of scammers,my advice for everyone is that you all should be careful because i was a victim of such and i was lucky i met the right Mr carlos @Charles_forex09 0️⃣n InSTA who i trust now without any fear to loose my money because i have benefited from him more than 5 times ..

KJM KJM says:

So what was being traded at the first stock exchange AMERICA?

DAVIS DAVIS says:

l am one of the Victims. At first, the software seemed to be really professional and authentic I found many favorable reviews about its performance and delivered results. So, I decided to invest in it and try to achieve success in the online trading sphere. Soon, I realized that the software was swallowing all my investments. Brokers are nothing more than a dangerous and fraudulent platform. I invested over $ 140,000 and couldn't withdraw my money, months passed and still nothing So, I reached out to Amanda Louis to help me recover my funds, I have been able to recover $ 100,000 and the remaining $ 40,000 is in progress. I really can't tell how happy I am. Contact her via mail: amandalouis855@gmail.com

Zhang Chu says:

Awesome video, As a beginner, I’ve come to realize that experience beats hard work, I made weak profit investing on my own, but since the past 2 months I’ve been investing with the guidance of Mrs Carolyn Edward, i’ve made over $75,000 Profit using a capital of $12,000

Franklin Hardy says:

With dedication and consistency, I worked my ass off for 8 months investing 40% of my pay into stocks and ETFs in a bid to get back my life. I want to be rich, both in time and wealth. I am at 50% of my 2 million dollars goal using financial advisory from Alexander Payden. You can use something else but it takes a clear vision and dedication. Cheers 🥂
You

Brendan Clinton says:

AI will end trading

gallaxy LH love hope says:

Me a normal student, can't understand a thing but continue watching

Sloppy Turtle says:

turn off the annoying music that keeps one from hearing people talk.

Abbas Fayad says:

Because a whole new generation saw their greed and how it brought the world to its knees and decided its not worth the infamy.

Felix .C. Olofsson says:

I have challenged myself to put away 50% of my monthly income into dividend stocks which is quite easy since I live frugal at 32 without debt. I work as an account executive, and make over $2000. $1000 goes into dividends, and the other $1000 covers my my food plus living expenses. I am seeing improvements in my portfolio, dividends look certain, but I have to attribute this to only to guidance of a licensed fund manager who allocates funds to a plethora of assets. I have to stay disciplined, and remember that I’m in it for the long term. Good luck to everyone and thanks for the great video.

allgoo 19 says:

This explains why there are so many youtube advertisements on stock trading.

jonathan bell says:

The guy at 2:48 is wearing those fake nose and glasses??

Riste Kostadinov says:

Wallstreet traders are on r/wallstreetbets 1.4milion, you welcome 🙂

Once America now China says:

Biggest fraud in America

errorproxy says:

Hugh Mungus

V K says:

Thanks robinhood!

Keith Rolland says:

No real Americans. Almost all were born outside of the USA. Deport all of them

CHRYSTOPHER CASERO DIZON says:

#AC

21guitarworld says:

This is why I've started to invest in stonks.

First Name Last Name says:

Coronavirus?….

Comments are disabled for this post.