Middle office to front office
I quite recently joined a small prop shop that trades oil and gas commodities as an analyst in the MO. The company is invested heavily in tech and trying to develop strong fin tech trading systems. But it has a long way to go based on the system I have seen the disorganized data dump that they provide. The firm does power, natural gas (physical and financial), a little bit of renewable and environmental (I.E. carbon credits). I would like to know how to transition out of middle Office and into front office but I would like to do so rather quickly because I feel like the longer I wait the lesser of a chance I have of actually accomplishing this goal.
How would I go about doing this? What should I try to learn and who should I engage with? Has anyone had any success stories? And finally is this a realistic goal or a difficult climb that only a few have Managed to accomplish. I have worked in business development and in market riskpositions before and I sit on the trade floor right across from the traders. The roll consists of P&L reporting, (variance explaining), and broker reconciliation, and reporting to investors. Not a lot of critical thinking but I go above and beyond to understand the why and the strategies behind the trades so I can best understand the business and not just be an excel monkey. Also, if this doesn't pan out and I end up being in this roll for over a year. Should I leave after two years, look for another job in finance, or try to break more into a quant roll. What kind of exit opportunities am I looking at?
Based on the most helpful WSO content, transitioning from the middle office (MO) to the front office (FO) in a commodities trading firm can be a strategic move, and it's great that you're already thinking about the steps to take. Here are some actionable steps and insights to consider:
Leverage Your Current Role: Since you're already in a MO role with exposure to P&L reporting and broker reconciliation, use this to your advantage. Understand the trades and strategies deeply, as this knowledge can be a bridge to a FO position.
Network Internally: Given that you sit close to the traders, start building relationships with them. Engage in conversations, show interest in their work, and express your desire to move to the FO. Internal networking is crucial and can open doors for internal transfers.
Develop Relevant Skills:
Show Initiative: Go beyond your job description. If you see opportunities to improve the disorganized data systems, propose solutions. This shows initiative and can make you stand out as a candidate for FO roles.
Success Stories: Many have successfully made the transition from MO to FO. It often involves a combination of the right skills, timing, and internal advocacy. Be persistent and patient, as these transitions don't typically happen overnight.
Realistic Expectations: It's a realistic goal but understand that it's not always a quick or easy path. It requires strategic planning, networking, and sometimes a bit of luck.
Exit Opportunities: If after a year or two you feel the need to move on, consider roles that align with your experience in market risk and business development. Quant roles could be a good fit if you have strong mathematical and programming skills. Other finance roles in trading firms, investment banks, or risk management could also be suitable.
Remember, every situation is unique, and while these steps can guide you, your own initiative, performance, and the relationships you build will play a significant role in your ability to transition from MO to FO. Keep learning, networking, and demonstrating your value to the firm, and you'll increase your chances of making the move.
Sources: Move from back office to middle office to front office, Middle Office to Front Office in Sales & Trading, The best of the back (or middle) office?, From BO to FO and back again, or, how I learned to stop worrying and love technology, Many people move back office to front office
Search as soon at you can, definitely don't wait 2 years
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