The Sell-Side Organization
Sell-side firms play a central role in financial markets, providing a variety of services and continually adapting to the changing demands of markets. Sell-side firms are large and complex. The focus in this chapter is on trading activities of sell-side firms that are especially related to derivatives.
The listed market is well developed with large volumes traded. In a listed market, end-to-end processes are automated. The sell-side typically provides execution and clearing services. In OTC markets, sell-side firms make up the foundation of market. In most OTC transactions, sell-side is one of the counterparties. In addition, sell-sides continually structure and innovate new forms of derivative contracts. ...