The diagram shows a front-to-back functional view.
πΉ Front office (Pre-Trade & Trade)
These core business functions include client services, research, trading, brokerage, and sales. A bankβs front office generates revenue.
πΉ Middle office
Middle office functions support front office functions, including trading risk management, control services, recordkeeping, limits management, and analytical services.
πΉ Back office (Post-Trade)
Back office runs clearing and settlements. Various reporting happens in the back office as well.
πΉ Support
As a company, an investment bank also has supporting functions, including HR, legal & compliance, performance management, and support infra.
An investment bankβs middle office and back office functions typically donβt generate revenue, but they are necessary to remain in business. The bank spends a lot of money on meeting regulatory requirements.
The diagram shows a front-to-back functional view.
πΉ Front office (Pre-Trade & Trade)
These core business functions include client services, research, trading, brokerage, and sales. A bankβs front office generates revenue.
πΉ Middle office
Middle office functions support front office functions, including trading risk management, control services, recordkeeping, limits management, and analytical services.
πΉ Back office (Post-Trade)
Back office runs clearing and settlements. Various reporting happens in the back office as well.
πΉ Support
As a company, an investment bank also has supporting functions, including HR, legal & compliance, performance management, and support infra.
An investment bankβs middle office and back office functions typically donβt generate revenue, but they are necessary to remain in business. The bank spends a lot of money on meeting regulatory requirements.
Image Credit: Ajit Nair