ETF market making
Flow Traders interview guide
An exchange-traded fund market maker: reports describe online numerical tests followed by interviews on markets and a trading exercise.
TraderSoftware engineer
How the process usually runs
- 1
- 2
Interviews
Market knowledge, probability and how an ETF price relates to what it holds.
Practise: Bid book
- 3
What to revise
Weighted most heavily in reports: arithmetic speed, markets and etfs, market making. The topics below are where the 13 questions in the bank reported at Flow Traders come from.
Questions reported at Flow Traders
- An index rises 10% then falls 10%.Free solution
- What keeps a liquid equity ETF trading close to the value of its basket?Free solution
- An index is at 4,000, rates are 5% and the dividend yield is 2%, both…Free solution
- A commodity futures curve slopes upward.Free solution
- Two limit orders rest on the bid at the same price.Foundation
- What is a market maker fundamentally selling?Foundation
- An index fund charges 0.09% a year and earns 0.03% from securities lending.Applied
- Why would a fund express a broad equity view with an index future rather than…Applied
- An equity ETF trades at a 0.6% premium to the value of its underlying basket.Applied
- A bond ETF trades at a 3% discount to its stated net asset value during a selloff.Advanced
A summary of what candidates publicly report, not information from Flow Traders. Processes change by year, role and office. QuantMax is not affiliated with, endorsed by, or recruiting for Flow Traders.