CHAPTER 6

The Buy-Side Organization

The previous chapter provided an overview of the various players involved in derivatives markets and their respective roles. It focused particularly on two major types of players: buy-side and sell-side firms. To understand the derivatives market, it is critical to understand the structure and operations of these two types of organizations. This chapter analyzes the organizational structure of buy-side firms in respect of derivative-related activities. Buy-side organizations are the consumers of financial products, including derivatives. Chapter 7 performs a similar analysis of sell-side firms.

Because most operations are essentially the same across the industry, firms share a similar organizational structure ...

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