User:Alexkachanov/Finance/Sell-side

agency broker
брокеры-агенты не накапливают ликвидность (не занимаются маркет-мейкерством) и не заниматся проприетарной торговлей. источником их дохода является комиссия, взимаемая за исполнение ордеров клиентов.

Prime broker services

 * to hedge fund
 * execution of orders
 * hedge fund hotel - office space, infrastructure
 * accounting and portfolio management software
 * reporting
 * capital introduction

Structure
To understand STP, you need to understand the concepts of the front office, middle office, and back office (see Figure 1-13). These are, role-wise, the segregation in a member’s office or trading institution’s office.

Front Office
The front office is responsible for trading. In a broker’s office, the front office speaks to various customers and solicits business. The front-office staff is also responsible for managing orders and executing them.

The FO forms the stage where the trade gets initiated. Here, the order gets placed and the entity will price the instrument and give the quote to the counterparty. If the counterparty agrees to the details of the trade and is willing to enter into the deal, the trade gets executed. The trade is then captured in the trading desk usually using a deal capture system. The deal capture system validates all the necessary trade economics before assigning a trade reference number. Subsequent trade events like amendment, cancellation would refer to the trade with the help of the identifier. An acknowledgement is being sent to the counterparty with the trade details who confirms it back.

Middle Office
The middle office is also responsible for reporting, especially where corporate-level reporting is required.

The important function that MO performs is to do the Limits and Risk Management. The Limits are being calculated at a business hierarchy level. The usual hierarchy would be at a Portfolio level and subsequently aggregating to a Trader Level, a Desk Level, an Entity Level, and finally to a Group Level. Validations are being done on the trade captured, and in case of any discrepancy, an exception is being raised.

Back Office
The back-office staff is responsible for settling transactions. The back office ensures that all obligations toward the clearing corporation are met seamlessly and that the member receives its share during pay-out. While this entire process is happening, the middle office monitors all limits and exposures, and thus risks, that the firm is assuming.

The BO is the back bone of the entire life cycle of the trade. The BO mostly deals with the operational activities like record keeping, confirmation, settlement and regulatory reporting. In most cases, BO activities are being outsourced to cheaper sources to cut down on costs for the company.

Since a broker’s office is organized into front, middle, and back offices, solution providers structure their products in the same fashion in the form of modules. Although many vendors provide solutions for all three sections, it is not mandatory for a broker to buy all three modules from the same vendor. If a broker goes for different vendors, though, then they have an issue of intermodule communication. Most brokers want all the three modules to be integrated. If they are not, then data will have to be entered multiple times in these modules. To obviate from this problem, brokers rely on a concept called STP (see Figure 1-14).

Investment Banks
Bulge brackets:
 * Bank of America Merrill Lynch
 * Barclays Capital
 * Citigroup
 * Credit Suisse
 * Deutsche Bank
 * Goldman Sachs
 * JPMorgan Chase
 * Morgan Stanley
 * UBS
 * Paribas

почившие

 * Salomon Brothers - куплен Travelers Group (1998), и стал позднее частью Citigroup
 * First Boston - куплен Credit Suisse First Boston (1990)
 * Kidder, Peabody & Co. - куплен General Electric Corporation (1986), перекуплен Paine Webber (1994), стал частью UBS
 * Paine Webber - куплен UBS (2000)
 * Bear Stearns - разорился куплен JPMorgan Chase (март 2008)
 * Lehman Brothers - разорился, европейские остатки куплены Barclay's, японские Nomura Securities (сентябрь 2008)
 * Merrill Lynch - разорился куплен Bank of America (сентябрь 2008)

для чтения

 * Goldman Sachs
 * (1869 - 1999) Goldman Sachs : The Culture of Success (ISBN 0684869683)
 * (1985-1988 1990-2002) Emanuel Derman - My Life as a Quant: Reflections on Physics and Finance (ISBN 0470192739)
 * (1992 - 2004) Steven G. Mandis - What Happened to Goldman Sachs (ISBN 1422194191)
 * (1994 - 1998) Jonathan A. Knee - The Accidental Investment Banker: Inside the Decade That Transformed Wall Street (ISBN 0470517344)
 * (2000 - 2012) Greg Smith - Why I Left Goldman Sachs (ISBN 1455527475)
 * The Partnership: The Making of Goldman Sachs (ISBN 1594201897)
 * Chasing Goldman Sachs: How the Masters of the Universe Melted Wall Street Down . . . And Why They'll Take Us to the Brink Again (ISBN 0307460118)


 * JP Morgan
 * The House of Morgan: An American Banking Dynasty and the Rise of Modern Finance (ISBN 0802144659)
 * Gillian Tett - Fool's Gold: The Inside Story of J.P. Morgan and How Wall St. Greed Corrupted Its Bold Dream and Created a Financial Catastrophe (ISBN 1439100136)


 * Morgan Stanley
 * (1989 – 1993) Dan Reingold - Confessions of a Wall Street Analyst: A True Story of Inside Information and Corruption in the Stock Market (ISBN 0060747706)
 * (1994 - 1995) Frank Partnoy - FIASCO (ISBN 0140278796)
 * (1998 - 2003) Jonathan A. Knee - The Accidental Investment Banker: Inside the Decade That Transformed Wall Street (ISBN 0470517344)
 * (2005) Patricia Beard - Blue Blood and Mutiny: The Fight for the Soul of Morgan Stanley (ISBN 0060881925)
 * The House of Morgan: An American Banking Dynasty and the Rise of Modern Finance (ISBN 0802138292)


 * Merrill Lynch
 * (1993 – 1999) Dan Reingold - Confessions of a Wall Street Analyst: A True Story of Inside Information and Corruption in the Stock Market (ISBN 0060747706)


 * Salomon Brothers
 * (1984 - 1989) Michael Lewis - Liar's Poker: Rising Through the Wreckage on Wall Street (ISBN 0140143459)
 * (1988 - 1990) Emanuel Derman - My Life as a Quant: Reflections on Physics and Finance (ISBN 0470192739)


 * Credit Suisse First Boston
 * (1994) Frank Partnoy - FIASCO (ISBN 0140278796)
 * (1999 – 2003) Dan Reingold - Confessions of a Wall Street Analyst: A True Story of Inside Information and Corruption in the Stock Market (ISBN 0060747706)


 * Bear Stearns
 * (2008) William D. Cohan - House of Cards: A Tale of Hubris and Wretched Excess on Wall Street (ISBN 0385528264)
 * (2008) Kate Kelly - Street Fighters: The Last 72 Hours of Bear Stearns, the Toughest Firm on Wall Street (ISBN 1591842735)


 * Lehman Brothers
 * (2008) Lawrence G. McDonald Patrick Robinson - A Colossal Failure of Common Sense (ISBN 9780307588340)