1.2 Financial Services - Professional & Retail Business Flashcards
Financial activities that make up the wholesale/professional sector include?
- equity markets
- bond markets
- foreign exchange
- derivatives
- insurance
- fund management
- investment banking
- custodian banking
Financial activities that make up the retail sector include?
• retail banking
• insurance
• pensions
• investment services – a range of investment products and vehicles ranging from execution-only
stockbroking to full wealth management services and private banking, and
• financial planning and financial advice
Names of the major stock exchanges are?
• New York Stock Exchange (NYSE)
• Nasdaq (the two New York exchanges account for around 40% of all global exchange business)
• Shanghai Stock Exchange (SSE)
• Japan Exchange Group, which includes the Tokyo Stock Exchange (TSE)
• In Europe, the largest exchanges are the London Stock Exchange (LSE), Euronext, Deutsche Börse
and the SIX Swiss Exchange.
what systems rival the traditional stock exchanges?
multilateral trading facilities (MTFs). These systems are also known as crossing networks or matching engines that
are operated by an investment firm or another market operator.
How is foreign exchange traded?
OTC - counterparties deal directly with each other - no exchange or clearing house.
what are the main locations for FX trading?
London 43% US 16% Singapore 8% Hong Kong 8% Japan 4% Others 21%
How are derivatives traded?
OTC and exchange traded.
Which are the world’s largest insurance markets?
US, China, Japan and the UK are the largest insurance markets
Who are the largest providers of insurance?
China Life, Allianz, AXA.
What is Lloyds of London?
History dating back over 300 years, it is one of the largest insurance organisations in the world. It is not an insurance company but a marketplace that brings together a range of insurers, both individuals and companies, each of whom accepts insurance risks as a member of one or more underwriting syndicates.
What does Lloyds insure?
Lloyd’s insures specialist and complex risks in casualty, property, energy, motor, aviation, marine and
reinsurance. It has a reputation for innovation, for example, developing policies for aviation, burglary and
cybercrime, and is known across the world as the place to bring unusual, specialist and complicated risks.
Who are the largest reinsurers?
Munich Re, Swiss Re, Hannover Re,
Berkshire Hathaway and Lloyd’s of London.
