Financial Institutions Selling These Products
A number of major investment banks have dedicated strategy index teams or are looking to establish one. These desks usually work under the exotic derivatives umbrella at each bank. As a result, it is difficult to establish exactly how much strategy index trading generates at each bank. Deutsche Bank is generally regarded to be the leader in this business with Barclays, RBS, Lehman (Now Nomura), Morgan Stanley, Goldman Sachs and UBS all looking to quickly establish themselves in this business. Considering that it is possible to charge up to 1.5–2.0% annually on these trades, with the usual charge being 1% running, the revenues on a typical 5-year strategy trade are 5–10 times that of a conventional exotic trade.
Read more about this topic: Trading Strategy Index
Famous quotes containing the words financial, institutions, selling and/or products:
“One of the reforms to be carried out during the incoming administration is a change in our monetary and banking laws, so as to secure greater elasticity in the forms of currency available for trade and to prevent the limitations of law from operating to increase the embarrassment of a financial panic.”
—William Howard Taft (1857–1930)
“There are no institutions in America: there are only fashions.”
—H.L. (Henry Lewis)
“Then he entered the temple and began to drive out those who were selling things there; and he said, “It is written, My house shall be a house of prayer’; but you have made it a den of robbers.””
—Bible: New Testament, Luke 19:45,46.
“... white people, like black ones, are victims of a racist society. They are products of their time and place.”
—Shirley Chisholm (b. 1924)