In this 2nd part of his talk, Anchit Desai, Director - Fixed Income and FX Sales, Bank of America (also an IIT Bombay and IIM Ahmedabad alumnus) takes us through just what it is that he does. From managing sales for fixed income, currencies and commodities, to touching upon the famous market crash of 2010 to explaining why trading actually happens in banks, Anchit tells us all. If you want to know the difference between what an equities department and FICC departments do at banks, or what it takes to succeed in a finance role, this is a must-watch for you. Meanwhile, would you like to attend a Konversations Cafe event? Well, we have good news! Konversations Cafe is coming to Delhi on 14th March! To register, click
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This is part 2 of Anchit's talk. View Part 1 here -
http://bit.ly/38mapxl. View part 3 tomorrow.
Summary
In this video, Anchit takes us through how trading actually happens. He explains how trades are formed. He talks of order matching and how equity traders match buyers and sellers using algorithms. Further, he talks about what the FICC arm at a bank does and how it differs from the equity department.
He goes on to describe how a salesperson adds value to the FICC trading function. He talks about how researchers and traders actually try to gauge market insights by going to the field and connecting with stakeholders. He shares how India is going through an automobile crisis with auto sales dropping and how professionals on the trading floor deal with such economic, political and other fluctuations. He shares how the markets are affected by various factors. Basically, if you want to understand what makes markets tick, how commodities and currencies are traded, and the philosophy behind these movements, this is a must-watch.
Key Takeaways
1. An equity broker gives you access to an automated order matching system, thus matching your interest and desired price with prospective buyers or sellers.
2. The salesperson in the FICC business works on getting more clients to trade with the bank.
3. The trader’s job is to make sure that the trade happens at a good price, thus earning revenue for the bank.
4. Equity is the value of the shares issued by a company or stocks and shares that carry no fixed interest.
5. Fixed income is a type of security that pays investors fixed interest payments until its maturity date. At maturity, investors are repaid the principal amount they had invested.
6. Over the counter derivatives = A derivative is a security with a price that is dependent upon or derived from one or more underlying assets. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates, and market indexes.
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