Wall Street’s Bonus Culture Gets Reshaped by Machines

The video discusses the commoditization of trading, driven by electronification and regulatory changes. Chris Purvis from UBS highlights the shift in workforce dynamics, with a focus on attracting tech-minded individuals rather than those seeking high incentives. Despite tech companies moving into finance hubs, pay remains constrained due to margin compression. The future of finance is expected to be more tech-oriented, with challenges in attracting talent due to changing market conditions.

What has contributed to the commoditization of trading?

• Decrease in market regulations

• Higher bonuses for traders

• Volcker rules and electronification

• Increased manual trading

What type of individuals is the finance industry now looking to attract?

• Individuals with a tech-oriented mindset

• People interested in traditional banking

• Those seeking high bonuses

• Candidates with no tech background

What is a significant challenge for Wall Street in attracting talent?

• Excessive bonuses offered

• Margin compression limiting pay

• High competition from tech companies

• Lack of job opportunities

How has the influx of tech companies into Manhattan affected Wall Street?

• Increased pay for finance professionals

• Decreased interest in tech jobs

• Higher bonuses in the finance sector

• No significant impact on finance pay

What is the current state of trading compared to its heyday?

• Similar to the past

• More lucrative than ever

• Not as profitable as it used to be

• Completely unchanged