Inside UBS' $3 billion a day trading floor

On UBS’ Sydney trading floor, 117 staff execute $3 billion worth of financial transactions every day — equal to 20% of total daily turnover on the Australian Securities Exchange.

The high-pressure environment where traders juggle client requests for large stock and currency trades is a bit like playing sport, UBS' head of global markets Michael Hendrie told Markets with Madison.

“You can train all you like but a grand final in the last five minutes, that’s when the game is won or lost.”

Each employee on the floor was set up for when things got crazy, Hendrie said, “because that’s when mistakes happen”.

“We try and hard code individuals to operate under stress.”

UBS Head of Global Markets in Australia & New Zealand Michael Hendrie leads its Sydney trading floor.

While it was rather tame the day the NZ Herald visited, Hendrie said the floor can feature “raised voices” and “healthy discussion”.

That’s when the ‘ka-ching’ and beeping sound effects coming from computers was much needed.

“Those different sounds reflect a different trade. Sound is a hugely important part of the floor, but particularly if you’re running risk.

“When it gets really loud, you hear that sound you’re used to hearing over and above every sound.”

See UBS’ trading floor for the first time and hear how Michael Hendrie’s team handles risk, pressure and discreet client requests, in today’s episode of Markets with Madison above.

Get investment insights from executives and experts on Markets with Madison every Monday and Friday here on the NZ Herald, on YouTube and wherever you get your podcasts.

Sponsored by CMC Markets.

Disclaimer: The information provided in this programme is of a general nature, and is not intended to be personalised financial advice. We encourage you to seek appropriate advice from a qualified professional to suit your individual circumstances.

Madison Malone (nee Reidy) is host and executive producer of the NZ Herald’s investment show Markets with Madison. She joined the Herald in 2022 after working in investment, and has covered business and economics for television and radio broadcasters.