Trading Desks
Delta One trading desks are either part of the equity finance or equity derivatives divisions of most major investment banks. They generate most revenue through a variety of strategies related to the various delta one products as well as related activities, such as dividend trading, equity financing and equity index arbitrage. In theory such desks should be relatively low risk areas for the banks as the products are generally hedged. FT Alphaville has described Delta One trading as "one of the hottest areas in banking" and "...the last domain of prop trading in the banking sector, where via market-making activities, traders can still get away with taking ample risks."
Two high profile cases of losses resulting from rogue trading (those of Jérôme Kerviel at Société Générale and Kweku Adoboli at UBS) involved Delta One traders.
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Famous quotes containing the words trading and/or desks:
“His farm was “grounds,” and not a farm at all;
His house among the local sheds and shanties
Rose like a factor’s at a trading station.”
—Robert Frost (1874–1963)
“The boys with their feet on the desks know that the easiest murder case in the world to break is the one somebody tried to get very cute with; the one that really bothers them is the murder somebody only thought of two minutes before he pulled it off.”
—Raymond Chandler (1888–1959)