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

Critical Analysis of the Departments - Essay ExampleIt is a general and accepted notion in fiscal market that propriety trading is much riskier than non-propriety trading as it results in more volatile trading. Financial analyst believes that firmlys and investment banks usually leave the monetary market in ambiguity when it comes to their quantum of propriety trading and non-propriety trading. TPG believes that it has competitive advantage over other players in the market that is way it has its major investment in propriety trading. Certain percentage of revenue, but comparatively lower, is generated from non-propriety trading which is in like manner 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 company has been focusing on its flow trading parentage as well as it is likely to generate more client information which thus supports propr iety trading eventually. The trading surgical incision of TPG works in close collaboproportionn 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 involved in the pricing of derivatives and hedging. This function involves an intricate software development and thus the expertise of the IT department is always required to be at the garbage 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 taxonomical and non-systematic risk. The process 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 company is levered which in financial terms would interpre t 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 alarming 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 sales department is another crucial department when it comes to the business strategy of the company. The sales department is accountable for approaching 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 which the trading with the corporate and non-corporate clients is conducted. This department go out require a considerable number of highly skilled and dedicated staff who is able to understand the technical need