{"product_id":"how-the-trading-floor-really-works-isbn-9781119962953","title":"How the Trading Floor Really Works","description":"\u003cb\u003eA detailed look at what really happens in the front office of an investment bank and why\u003c\/b\u003e \u003cp\u003eTrading floors have always fascinated people, but few understand the role they play in the world of finance today. Though markets rise and fall every day, the drivers of those are rarely explored. Those who understand the dynamics of trading floors will better understand the dynamics of global financial markets. This book reveals the key players on the floor, their roles and responsibilities, how they serve their clients, and how it all impacts the markets. It also explains important terminology, explains the world of trading both cash and derivatives, and much more.\u003c\/p\u003e \u003cp\u003eIncludes a foreword by Gillian Tett, author of \u003ci\u003eFool's Gold: How Unrestrained Greed Corrupted a Dream, Shattered Global Markets and Unleashed a Catastrophe\u003c\/i\u003e.\u003c\/p\u003e \u003cp\u003eTerri Duhon (www.terriduhon.co) is a financial market expert who in 2004 founded \u003cb\u003eB\u0026amp;B Structured Finance Ltd\u003c\/b\u003e, which provides expert consulting and financial markets training . Her time on the trading floor has been documented in the book \u003cb\u003eFool's Gold\u003c\/b\u003e as well as by \u003cb\u003ePBS's Frontline\u003c\/b\u003e.\u003c\/p\u003e \u003cp\u003eForeword by Gillian Tett xi\u003c\/p\u003e \u003cp\u003ePreface xv\u003c\/p\u003e \u003cp\u003eWhy I Wrote this Book xv\u003c\/p\u003e \u003cp\u003eWhat this Book Does and Does Not Do xvi\u003c\/p\u003e \u003cp\u003eWho this Book Is For xvi\u003c\/p\u003e \u003cp\u003eFinally, Some Key People in the Process of Writing this Book xvii\u003c\/p\u003e \u003cp\u003eAll Feedback Welcome! xvii\u003c\/p\u003e \u003cp\u003eWomen on the Trading Floor . . . Really? xix\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 What Are Financial Markets? 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDebt Markets 4\u003c\/p\u003e \u003cp\u003eEquity Markets 11\u003c\/p\u003e \u003cp\u003eOther Asset Classes 21\u003c\/p\u003e \u003cp\u003eDerivative Markets 22\u003c\/p\u003e \u003cp\u003eConclusion 26\u003c\/p\u003e \u003cp\u003eDiscussion Questions 27\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 What Role Do Banks Play in Financial Markets? 29\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat It Means to Provide Liquidity 31\u003c\/p\u003e \u003cp\u003eCentral Market Platforms 37\u003c\/p\u003e \u003cp\u003eWho Are the Clients and What Are They Doing? 45\u003c\/p\u003e \u003cp\u003eConclusion 54\u003c\/p\u003e \u003cp\u003eDiscussion Questions 56\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Which Part of the Bank Are We Talking About? 57\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCorporate Finance 60\u003c\/p\u003e \u003cp\u003eGlobal Financial Markets 63\u003c\/p\u003e \u003cp\u003eWhere Are these Trading Floors? 73\u003c\/p\u003e \u003cp\u003eThe Trading Floor’s Relationship with Clients 75\u003c\/p\u003e \u003cp\u003eThe Loan Portfolio and the Funding Department 76\u003c\/p\u003e \u003cp\u003eConclusion 80\u003c\/p\u003e \u003cp\u003eDiscussion Questions 81\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 What Does It Mean to Trade? 83\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePACAM Treasury Trade 85\u003c\/p\u003e \u003cp\u003eSupermart Interest Rate Swap Trade 94\u003c\/p\u003e \u003cp\u003eA Structured Equity Product 108\u003c\/p\u003e \u003cp\u003eConclusion 118\u003c\/p\u003e \u003cp\u003eDiscussion Questions 119\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 What Is the Market and Why Does It Move? 121\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat Is the Market? 123\u003c\/p\u003e \u003cp\u003ePrice Fundamentals: Macroeconomics 128\u003c\/p\u003e \u003cp\u003ePrice Fundamentals: Company Specific News 135\u003c\/p\u003e \u003cp\u003eSupply and Demand 140\u003c\/p\u003e \u003cp\u003eConclusion 142\u003c\/p\u003e \u003cp\u003eDiscussion Questions 143\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 How Do Traders Make a Market? 145\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePACAM Treasury Trade 148\u003c\/p\u003e \u003cp\u003eSupermart Interest Rate Swap Trade 158\u003c\/p\u003e \u003cp\u003eEquity Structured Product Trade 163\u003c\/p\u003e \u003cp\u003eA Typical Trader Day 166\u003c\/p\u003e \u003cp\u003eConclusion 168\u003c\/p\u003e \u003cp\u003eDiscussion Questions 169\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 How Is Proprietary Trading Different from Market Making? 171\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eProprietary Trading Desk Overview 173\u003c\/p\u003e \u003cp\u003eProprietary Desk Liquidity 176\u003c\/p\u003e \u003cp\u003eHow Market Makers Are Similar to Proprietary Traders 180\u003c\/p\u003e \u003cp\u003eTrading Book Accounting 186\u003c\/p\u003e \u003cp\u003eTrader Capital Allocation 187\u003c\/p\u003e \u003cp\u003eConclusion 188\u003c\/p\u003e \u003cp\u003eDiscussion Questions 189\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 What Is the Relationship Between Sales and Trading? 191\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eA Day in the Life 195\u003c\/p\u003e \u003cp\u003eKnow Your Client 199\u003c\/p\u003e \u003cp\u003eManaging the Client Relationship 201\u003c\/p\u003e \u003cp\u003eSales Person Stereotypes 209\u003c\/p\u003e \u003cp\u003eConclusion 211\u003c\/p\u003e \u003cp\u003eDiscussion Questions 211\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 What Role Does the Research Analyst Play? 213\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Role of a Credit or Equity Analyst 215\u003c\/p\u003e \u003cp\u003eConflict of Interest 221\u003c\/p\u003e \u003cp\u003eThe Economists and Strategists 222\u003c\/p\u003e \u003cp\u003eDesk Analysts 225\u003c\/p\u003e \u003cp\u003eConclusion 226\u003c\/p\u003e \u003cp\u003eDiscussion Questions 227\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 What’s So Special About Trading Derivatives? 229\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBond Intermediation 231\u003c\/p\u003e \u003cp\u003eDerivative Intermediation 234\u003c\/p\u003e \u003cp\u003eCounterparty Credit Risk 241\u003c\/p\u003e \u003cp\u003eIlliquid Derivatives Intermediation 246\u003c\/p\u003e \u003cp\u003eConclusion 248\u003c\/p\u003e \u003cp\u003eDiscussion Questions 249\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 Where Does Structuring Fit? 251\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Deal Origination 252\u003c\/p\u003e \u003cp\u003eDeal Negotiation 255\u003c\/p\u003e \u003cp\u003eDeal Closing 260\u003c\/p\u003e \u003cp\u003eConclusion 263\u003c\/p\u003e \u003cp\u003eDiscussion Questions 264\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 Where Are the Quants? 265\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePricing Models and What They Do 266\u003c\/p\u003e \u003cp\u003eRisk Management Models and What They Do 271\u003c\/p\u003e \u003cp\u003eFinancial Market Evolution 274\u003c\/p\u003e \u003cp\u003eQuants’ Relationship with the Trading Floor 275\u003c\/p\u003e \u003cp\u003eConclusion 277\u003c\/p\u003e \u003cp\u003eDiscussion Questions 278\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 13 What Are the Risks? 279\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMarket Risk 281\u003c\/p\u003e \u003cp\u003eCredit Risk 287\u003c\/p\u003e \u003cp\u003eOther Risk 292\u003c\/p\u003e \u003cp\u003eConclusion 295\u003c\/p\u003e \u003cp\u003eDiscussion Questions 296\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 14 How Do We Manage These Risks? 297\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eNew Product Approval Process 299\u003c\/p\u003e \u003cp\u003eMarket Risk Limits 304\u003c\/p\u003e \u003cp\u003eCredit Risk Limits 307\u003c\/p\u003e \u003cp\u003eLearn from Experience 309\u003c\/p\u003e \u003cp\u003eConclusion 312\u003c\/p\u003e \u003cp\u003eDiscussion Questions 313\u003c\/p\u003e \u003cp\u003eEpilogue 315\u003c\/p\u003e \u003cp\u003eGlossary 317\u003c\/p\u003e \u003cp\u003eIndex 341\u003c\/p\u003e \u003cb\u003eTerri Duhon\u003c\/b\u003e is a financial market expert with almost 18 years of experience in financial markets. She graduated from MIT in Math in 1994 and immediately joined JPMorgan as a derivatives trader on Wall Street. While at JPMorgan, she was instrumental in developing the credit derivative market globally. Her time on the trading floor has been documented in the book \u003ci\u003eFool's Gold\u003c\/i\u003e as well as by PBS's \u003ci\u003eFrontline\u003c\/i\u003e. In 2004, after 10 years on the trading floor in New York and London, Terri founded B\u0026amp;B Structured Finance Ltd, which provides expert consulting and financial markets training. She has led expert witness teams for financial litigation in both NY and London, assisted asset managers in assessing financial market risks as well as given hundreds of training programs globally for thousands of participants. She is also retained by a major financial regulator as an expert consultant on financial markets. Terri gives university lectures, speaks at conferences and is often quoted in the financial press. She sits on the board of two charities and lives with her family in Oxford, England.  \u003cp\u003e\"How the Trading Floor Really Works \u003ci\u003eis an invaluable resource for current MBAs, recent graduates and experienced financial market participants alike. For the novice about to join the trading floor ranks, it provides a base framework for understanding the world they are entering. For the investment banker, investor, portfolio manager or other financial expert who doesn't work on the trading floor, it demystifies the \"black box\" of the trading floor in an entertaining yet informative way.\"\u003cbr\u003e —\u003c\/i\u003e\u003cb\u003eDr. Susan S. Fleming, Senior Lecturer, Johnson Graduate School of Management\/School of Hotel Administration, Cornell University\/Former Partner, Capital Z Partners, L.P.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003e\"Written in a lively and digestible style, this clear and cogent book covers much more than the title suggests. In fact the book lays out much of the banking industry's critical role in financial markets; the basic differences between various classes of financial instruments; and how trading businesses interact with other parts of a large complex financial institution. Not only for students and post-grads interested in financial markets, this book would be a great primer for anyone entering or working in a related field, such as clients, journalists, regulators, consultants and policy-makers. The vignettes and examples the author uses bring relevance and humour to this technical subject, as well as capturing the trading floor environment.\"\u003cbr\u003e —\u003c\/i\u003e\u003cb\u003eBetsy Gile, Board Member, Deutsche Bank Trust Corporation\/Board Member, Keycorp\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003e\"An easy and enjoyable read – even for somebody who has been on a trading floor for over 20 years. I learnt a lot reading it.  It has the balance of expertise written in an easy style with real examples – a valuable book for market professionals and also participants\"\u003cbr\u003e \u003c\/i\u003e\u003cb\u003e—Addy Loudiadis\u003c\/b\u003e\u003c\/p\u003e  \u003cp\u003eIs the trading floor really the Wild West?  Do banks’ trading floors have a purpose or are they relics of the past in the brave new world of finance post crisis? Trading floors have always fascinated people, but few understand the role they play in the world of finance today.  The dynamics of the trading floor are a microcosm of the global markets. Understand these dynamics and better understand the dynamics of global financial markets. \u003c\/p\u003e \u003cp\u003eThe book is the perfect starting place for anyone who wants to understand financial markets. It clearly explains how the financial markets work and what the purpose of the bank and the bank trading floor is, using clear examples. The book puts the bank’s role in the financial markets in context, explains what really happens on the fabled trading floor and helps to interpret the conversations and the roles and responsibilities of the key players. It is also the ideal companion for any financial market professional not sat on the trading floor, with chapters detailing the roles of quants, risk managers and clients and going into the details of prop trading, market making and derivative trading. \u003c\/p\u003e \u003cp\u003e\u003ci\u003eHow The Trading Floor Really Works\u003c\/i\u003e covers what most academic books don’t by focusing on key individuals on the trading floor and walking through some common financial markets transactions. It also clarifies the role of the trading floor itself and sheds light on the opaque terminology. In this book, Terri Duhon uses her personal experience of the trading floor to decipher and translate the world of financial markets. \u003c\/p\u003e \u003cp\u003eImportant questions this book answers include:\u003c\/p\u003e \u003cul\u003e \u003cli\u003eWho are the key players on the trading floor and what are their roles and responsibilities?\u003c\/li\u003e \u003cli\u003eWho are the clients and do they really need the services the trading floor provides?\u003c\/li\u003e \u003cli\u003eHow does the client understand their risk and know when the price is right?\u003c\/li\u003e \u003cli\u003eHow does all this impact global financial markets?\u003c\/li\u003e \u003c\/ul\u003e","brand":"Bloomberg Press","offers":[{"title":"Default Title","offer_id":47989375893733,"sku":"NP9781119962953","price":58.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781119962953.jpg?v=1761783870","url":"https:\/\/k12savings.com\/products\/how-the-trading-floor-really-works-isbn-9781119962953","provider":"K12savings","version":"1.0","type":"link"}