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41 Cards in this Set
- Front
- Back
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Top 5 Global Financial Centres? |
NY, London, Singapore, HK, San Fran |
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Five financial activities making up wholesale/professional sector? |
Equity markets, bond markets, foreign exchange, derivatives, insurance. |
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What occurs in wholesale asset management? |
Managing investment portfolios of collective investment schemes, pension funds and insurance fund. |
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What occurs in wholesale investment banking? |
M&A, equity trading, fixed income trading and PE |
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What is custodian banking? |
Provision of services to asset managers involving the safekeeping of assets; the administration of the underlying investments; settlement, corporate actions and other specialised activities |
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5 major Retail sector services |
Insurance Pensions Investment services Financial planning and accident Retail banking |
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What are the range of retail investment services? |
Execution only stock broking, DFM, full wealth management services and private banking. |
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Largest exchange in the world? |
NYSE |
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Four largest exchanges? |
NYSE, Nasdaq, Shanghai SE, Euronext |
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Largest exchanges in Europe? |
LSE, Euronext, SIX Swiss Exchange, Deutche Borse AG |
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What are multilateral trading facilities? |
Systems that bring together multiple parties interested in buying and selling financial instruments. |
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What do bond markets do? |
Enable governments and firms to raise loans or debt finance directly from investors + facilitate secondary trading of those securities. |
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Equity or bond markets larger? |
Bond in terms of size and value of trading. But volume of bond trading is lower as each transaction is much larger on average. |
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What are foreign exchange markets? |
Where currency is traded and it determines exchange rates. |
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What is the largest market: equity, bond, FX, Derivatives, Insurance? |
FX |
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What type of market does not use a central exchange? |
An OTC market |
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Largest FX trading country? |
U.K., at 38.1%; US second at 19.4% and follows then Singapore’s, HK, Japan |
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What are derivatives? |
Complex products based on underlying instruments including currencies, indicies, interest rates, equities, commodities and credit risk. |
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What is the most popular type of derivative? |
Interest rate derivatives - mostly through interest rate swaps. |
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Which currencies dominate the derivatives markets? |
USD and Euro |
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Is derivatives market OTC or exchange-traded? |
Both - Chicago Mercantile is exchange. Europe dominated OTC derivatives worldwide. |
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Largest insurance markets? |
Back (Definition) |
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What is Lloyds of London specialty? |
Complex risks in casualty, property, energy, aviation, marine and reinsurance. |
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What is reinsurance? |
Cover an insurer will take out to protect itself against the risk of having to pay out claims |
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What services do retail banks provide? |
Taking deposits, lending to individuals and small businesses; providing payment and money transmission services. |
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What are building societies? |
Mutuals where they are jointly owned by their depositors or members. |
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What is the NS&I? |
Largest single savings organisation in the U.K offering savings bonds and national savings certificates. Run by UKG. |
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What are challenger banks? |
Smaller banks specialising in areas underserved by larger traditional banks with financial tech and no branches |
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What is P2P lending / crowdfunding? |
Where investors can lend directly to individuals worldwide raising capital for ventures. |
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3 types of crowdfunding? |
Donations Lending - debt Equity |
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What do investment banks do? |
Provide advice and finance for companies floating on stock market; raise additional finance by issuing further shares or bonds; carrying out M&A, and investment services for institutional or very high net worth investors. |
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What do fund managers do? |
Run portfolios for institutions (eg pension funds and insurance companies) as well as for collective investment schemes such as unit trusts, OEICS for wealthy individuals. |
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What type of stockbrokers can you have? |
Institutional for big trades. Execution only for retail clients earning commission. |
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What type of stockbrokers can you have? |
Institutional for big trades. Execution only for retail clients earning commission. |
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What is a wealth manager? |
They charge fees for advice and commission on transactions to look after their client’s portfolio. |
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What are platforms? |
Provide custody and administration services for advisors making it easy for them to manage their clients portfolio. Or D2C. |
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What are platforms? |
Provide custody and administration services for advisors making it easy for them to manage their clients portfolio. Or D2C. |
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What are platform wraps? |
The majority of them - offering a wide range of wrappers and underlying funds. |
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What are platforms? |
Provide custody and administration services for advisors making it easy for them to manage their clients portfolio. Or D2C. |
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What are platform wraps? |
The majority of them - offering a wide range of wrappers and underlying funds. |
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What are fund supermarkets |
Range of unit trusts, OEICS and investment trusts, ETFs. |
