馃攳
13. Front Office vs Middle Office vs Back Office in Investment Banking - YouTube
Channel: WallStreetMojo
[10]
hello friends welcome to this
investment-banking tutorial from wallstreetmojo
[15]
let us now look at the structure of an investment bank the
[19]
structure of the investment bank is
actually divided into some jargon I will
[24]
call this as front office then there is
something called middle office and then
[34]
we have another thing called back office
what does this front office middle
[39]
office and back office actually mean in
this context so when we talk about
[43]
Investment Banking or jobs of Investment
Banking where you know investment
[48]
bankers are directly dealing with
clients so front office means you know
[52]
being the face of the organization so
you're dealing directly with the clients
[56]
and hence you are but then working in a
front office likewise think of sales and
[63]
trading desk sales and trading desks as
we have discussed you know this these
[68]
are the guys who actually directly talk
to the clients and advice them on the
[73]
buy and sell recommendations of the
stocks so since they're directly
[77]
interacting with the clients they are
considered to be a front office kind of
[81]
roles likewise research is also
considered to be a front office role
[86]
because they are also directly
interacting with the client you know
[91]
recommending their own set of analysis
about buy sell on a particular stock so
[97]
we have early seen that how research
sales and trading actually work in
[101]
tandem in order to convince a client so
this is front office for you now what is
[107]
middle office and who comes in between
so when we talk about investment banking
[111]
structure something like you know risk
management team they come in the middle
[118]
office what's the key role of a middle office
[121]
and the middle office key role is to
actually interact with the front office
[125]
guys and to ensure that they do not
engage in any set of activities which
[131]
you know out of compliance or probably the risks
[135]
are too much for the investment back to
take so in order to check the work
[140]
associated with the front office middle
office actually the people employed here
[145]
actually does the risk assessment
related to it so all the controls and
[150]
procedures finance control guys even the
compliance the strategy guys all of them
[156]
actually come here and then they work at
a party middle office then this brings
[162]
us to the last thing that who works on
the back office so a back office are
[167]
those guys who are actually not
interacting with the clients so you know
[172]
you can say that the IT guys are the
technology guys they are the ones who
[177]
would be considered to be working in a
back office in the investment bank a
[181]
reason being that they are not
interacting with the client it's just a
[185]
nomenclature so don't worry about you
know why IT guys are you know not
[190]
classified as back office think of
whether are they facing the real clients
[195]
and if no then they could be either
classified as middle office or back
[200]
office also the operations guys
operation employees who are you know
[205]
helping out in terms of smooth
functioning of the business or the
[208]
investment bank can be classified as a
back office employees with this I hope
[216]
that you have properly understood what
are the roles and responsibilities of
[220]
individual functions within an
investment bank and educ ba is kind of
[226]
into Investment Banking and
research-based trainings and if you want
[230]
to learn more about individual functions
and want to make a career in this you
[235]
may want to kind of opt for different
training which we actually give an
[239]
equity research financial modeling
M&A sales and trading etc
Most Recent Videos:
You can go back to the homepage right here: Homepage