Critical Analysis of the Departments Essay Example | Topics and Well Written Essays - 3000 words

unfavorable Analysis of the Departments - Essay ExampleIt is a general and accepted notion in financial market place that propriety work is much riskier than non-propriety trading as it results in more volatile trading. Financial analyst believes that firms and investment banks usually leave the financial market in ambiguity when it comes to their quantum of propriety trading and non-propriety trading. TPG believes that it has militant advantage over other players in the market that is way it has its major investment in propriety trading. Certain percentage of tax income, just comparatively lower, is generated from non-propriety trading which is also referred to as the flow trading. In financial terms, the flow trading is conducted by the firm on behalf of the client funds and the firms revenue is the commission earned on this trading. The social club has been focusing on its flow trading business as well as it is likely to generate more client information which thus supports propriety trading eventually. The trading surgical incision of TPG works in close collaboration with Quantitative Analysis and Sales department which provides the relevant logistic support to the trading department. ... In addition to that, the department is also actively touch in the pricing of derivatives and hedging. This function involves an intricate software development and thus the expertise of the IT department is eer required to be at the disposal of the Quantitative Analytics department. The derivative pricing involves advanced numerical techniques and stochastic calculus. The department is also actively involved in risk management which involves both systematic and non-systematic risk. The exhibit usually involves a great deal of time series analysis and back testing. Last but not the least the department also evaluates the credit analysis. Credit analysis basically involves assessing how much the union is levered which in financial terms would interpret as the debt equity ratio of the company. When the debt to equity ratio of the company exceeds a certain percentage, then the department proactively informs the higher management of the company about the situation and terrific them to reduce the leverage of the company. Most importantly, the department works for the development of the trading strategy of the firm. Sales The gross sales department is another crucial department when it comes to the business strategy of the company. The sales department is responsible for come near the client and maintaining their information. This department acts as the back bone of the organization and is responsible for setting up the web-site through and through which the trading with the corporate and non-corporate clients is conducted. This department will require a considerable number of highly apt and dedicated staff who is able to understand the technical need