What are the best strategies to transition from MO to FO in the finance industry? #financejobs #MOtoFO #careertransition
Exploring the Challenges of Moving from MO to FO
Are you facing difficulties breaking into the front office (FO) from the middle office (MO) in finance? It can be puzzling, given the similarities in roles within the derivatives, fixed income, and swaps sectors. However, with a strong foundation of experience, a good GPA, and an MBA, you may still encounter obstacles.
Strategies for Transitioning to a Larger Asset Manager
If your goal is to move to a larger asset management firm, especially in private sectors, consider the following steps:
– Pursue a CFA certification or a top-tier MS program
– Explore internal mobility opportunities within your current firm
– Research openings at larger firms to increase your chances of success
Overcoming Challenges and Maximizing Success
To enhance your chances of transitioning from MO to FO successfully, focus on the following aspects:
– Seek mentorship from professionals in FO roles
– Network extensively within the industry to explore potential opportunities
– Enhance your knowledge of FO responsibilities and expectations through research and engagement
By proactively addressing these challenges and leveraging your skills and qualifications, you can increase your chances of breaking into the front office in the finance industry. Remember, transitioning from MO to FO may require dedication, persistence, and a strategic approach. #financecareer #careertransition #frontoffice
It’s extremely difficult from my understanding, and even more so with all the ongoing layoffs in finance and tech. CFA isn’t going to improve your chances when employers are looking for experienced professionals.
Look, I may be a commodity trader now, but I’m well prepared for a smooth and horizontal transition to selling beets at the local farmers market.
You like sales and client interaction that much? I mean yeah it pays the best but you’d need to have a personality that people immediately look at and go, yeah this dude’s gonna thrive here.
The truth is that FO often requires a much different skillset than MO does. There is not much overlap between these positions and anyone that has moved horizontally has likely gotten lucky. Your best bet would be to try to get an opportunity at another company or going back to do a masters
The skillsets are very different, especially from your seat. Not trying to dig at you but your primary role is focused on rote tasks and procedures. You see more MO/FO movement from TA’s and those working with the desk in a more direct fashion than papering their trades.
Reality too is that these are jobs desired by so many people, and there are many qualified applicants per role. There simply just are folks who have better tailored experience and will need less up time when they land.
I would strongly challenge the assumption that FO roles are not drastically different from MO/BO. Not sure how your insurer operates, but by virtue of your role, your exposure to FO might be limited in scope.
Putting that aside, MO/BO folks are really stuck in a bind. If you’re a strong performer, the incentive from FO is to keep you where you are effective. If you are not, well, you’d have bigger issues.
I’ve been where you are. At my previous firm I saw people move internally to PM and externally to even PE. It’s totally possible. You need to get lucky and you’ll find the team willing to give you a shot. How do you get lucky? Apply. Not just 100 times but 1000 times if that’s what it takes. Everyone I know in MO was unsatisfied but a majority of us went on to do what we wanted. Your job is fast paced and there are more of us out there than you realize willing to take a chance on a person like you. ( CFA is a pain in the butt, but it doesn’t hurt to pass level 1 to show commitment )
I just finished my CFA a few weeks ago. Itll get u a job at an asset manager. Got me a final round interview for a trading role 2 yrs ago when market was good.
But 1. U work in settlement/ confirms, like the most unskilled/ repetitive task in the bank
2. Like 1000’s of other people I work with in th4 back office, a lot of them got bullshit masters/ MBA and are now stuck.
Ive seen a lot of these “stuck” ones just completely leave financial services altogether.
I think ur best route is the CPA route. Great job security, relevant work, and it can lead to a high-paying job in the future
Bruh.
1. Settlement operations are not middle office. Middle office is maybe IBOR, risk, some treasury, that sort of thing.
Settlements is the back office of the back office. Every major BB is offloading this to India rn.
2. Insurance firm. Certainly not the same thing as AM.
>other than CFA or masters
No because those two commitments are what is needed to bridge the gap and show ur dedication. wtf else would you have us recommend? A 2 week course ? Self study?
Please…FO is absolutely not the same as MO, and based of your description you are probably solving breaks and claims…
The roles are indeed drastically different. I didn’t always believe that when I was BO/MO but after making the switch to FO, it really is true.
CFA may help but you also need to move to something closer to FO than settlements/confirms
What about jointing trading prop firm
How long have you been trying? I assume these kind of transitions may take a couple years if you’re lucky
We used to say that the move from MO has to happen fast. I’d say within 18 months. It’s like being an actor and becoming typecast. Easiest way out is to find an FO sponsor.
As someone who’s done the move from BO to MO to FO, it is as you say, not easy, and not everyone makes the jump.
You have a lot of hurdles, one may be your senior mgmt trying to keep you in your seat. I was guilt tripped when I left MO to a FO role by my MD, who was notorious for cockblocking all efforts to transfer to a different team.
Another one is, you need to be likable, enough where the team taking you is willing to gamble that you will perform well.
One more is job market and economic cycle. You had a better chance two years ago after covid when it was still a job seeker’s market than what it is now. Especially with finance firms announcing layoffs here and there.
There’s a lot of moving parts that need to align to make it happen. Not to discourage you, but just giving you a dose of reality. You should keep trying, but it’s not going to come easy. I’ve failed a lot of interviews. But you just need one “yes” at the end of the day.
Don’t let your whole life revolve around it. But the key is to not give up. Let things take its course. Just be ready when the opportunity comes knocking. Good luck.
Not all MO roles are created equal. Trading Assistant role is your best bet (some shops have TA’s on the FO cost centre and get a bonus based of desk performance) even then it must be should crushing to see grads come on to the desk taking the one spot that should have been open for you. At least with a TA role you can interview for analyst roles or execution trader roles externally.
Confirms/settlements is BO, not MO at least last time I checked. Are you doing anything at your current role to learn beyond what is needed for your BO role?
A bit of a stretch to expect someone to pay you a ton of money AND teach you everything to get you started. And then what if you take 1yr to learn and then suck at your job? Why would anyone take that risk?
Remove the mba from your profile and get a masters in finance at a top school, that’s the only way really
it is all bullshit front office job in asset managers. To be honest you are probably way too overqualified so they don’t let you in because they don’t want to lose their jobs. Your best bet is hedge fund where true outperformance gets rewarded. Other places are just another frat house
That first line tells me all I have to know lol
No matter what you think – the roles ARE drastically different
I get you wanna get paid which is fair, but not being able to break in and then saying there’s not much difference just reeks of sour grapes
That’s an easy question to answer. It’s a two fold answer though.
A firm has put money into making you a MO worker, why would any firm (including that one) want to put more money into you to respec you when they could just put you into their respective MO and benefit from the money already put into you?
Also FO is super competitive, they’ve got candidates coming in from college with FO specialization, why give that spot to somebody who doesn’t have it?
If you want to go FO from MO or BO your only real choice is to get into a top 20 MBA and make sure you crush your mid-program internship. Your other choice is to be super lucky or have nepotism on your side, but since you made this post I don’t believe you have either of those.
Professional designations also won’t work, every designation that is worth something requires you to have specific experience related to what you’re designating in (CFA wants analyst experience, CPA wants accounting experience, CFP wants advising experience). Don’t be one of the thousands of MO and BO individuals that think getting SIE is going to help you, you’ll just be pushed towards a client facing MO or BO role.