The middle office is the department in a financial services company, investment bank, or hedge fund that sits in between the front and back office. It typically manages risk and calculates profits and losses. It is generally in charge of information technology (IT) as well.
What is middle office vs back office?
The middle office is made up of the risk managers and the information technology managers who manage risk and maintain the information resources. The back office is composed of the human resources department, office managers and customer care representatives who provide support, administrative and payment services.
What is meant by middle office?
The middle office is a department within a financial services institution. It comprises a team of employees that includes risk managers, information technology officers, and other officers who manage risks within the organization, as well as managing information technology.
What are the departments in an investment bank?
Within an investment bank, there is a clear line between the Investment Banking Division (IBD) and other areas of the bank such as:
- Equity research. The Equity Research Division is a group of analysts and associates. …
- Sales and trading. …
- Commercial banking.
- Asset management. …
- Retail banking, and other areas.
How much does middle office make?
The national average salary for a Middle Office is $73,452 in United States.
How much does a middle office Analyst Make?
Salary Ranges for Middle Office Analysts
The salaries of Middle Office Analysts in the US range from $61,000 to $153,920 , with a median salary of $75,000 . The middle 67% of Middle Office Analysts makes between $75,000 and $86,000, with the top 67% making $153,920.
Why is middle office important?
Middle office: the voice of reason
This information helps the decision makers to mitigate investment risks as much as possible. They also manage risk in terms of compliance, ensuring the bank’s practice is on the right side of legislation and industry standards.
Is financial analyst middle office?
Within banking, there are other non-quant analyst roles (not necessarily titled “financial analyst”), mainly within the “middle office”; these are generally linked, at least by dotted line, to both the Finance and Risk Management areas.
What is middle office reconciliation?
Funds reconciliation: Cash management prepares day-to-day reports of the cash balance at the close of business. Reconciliation solution compares the actual receivables and payables with those positioned to be paid/received for the particular value date.
Is compliance middle office?
The middle office handles a variety of IT, compliance and risk management tasks. The back office is responsible for a range of operational concerns mostly related to administrative tasks and clerical work, and some back offices also provide technical support.
What are front office roles in investment banking?
In investment banking, front office usually describes a revenue-generating role. There are two main areas of specialization within the front office: investment banking and markets. Investment bankers advise organizations on mergers and acquisitions (M&A), as well as a wide array of capital-raising strategies.
How much do back office investment bankers make?
Investment Banking Associate Compensation
For post-MBA associates, all-in compensation varies a good deal with signing bonus, relocation bonus and stub bonus. For base salary, you can expect between $125,000-$150,000. Bonuses are anywhere in the range between $80,000-$200,000.
What does a middle office analyst do?
Middle office analysts work in the treasury of a financial company, ensuring compliance with company policy and legal legislation, providing research and analysis on financial matters, measuring risk and supporting operations in the front office.