Function of the Central Risk Desk? Closest thing to prop trading?

I was wondering if you guys had any insight into what is known as the Central Risk Book, Central Risk Desk or Central Execution Desk in the trading department of an investment bank.

As far as I can tell the desk is there to ensure that trades across the bank are well hedged and executed. However, I have also been informed that the desk is more or less allowed to carry out proprietary trading, due to the fact that it is not necessarily trading in the market but internally or directly with clients.

An article entitled "banks hiring for the closest thing to prop trading" gives a brief explanation. My confusion is that, after describing it as close to prop trading, it then goes on to explain that its function is to monitor bank-wide trading positions to ensure trades are placed and hedged efficiently. Which, to me, sounds far removed from proprietary trading. In general, I struggle to understand exactly what the function of the desk is.

FT Alphaville also ran a piece on this desk entitled "Rise of the central execution desk"

Any feedback is much appreciated.

 
Best Response

Beatae qui velit autem error odit alias. Qui quia aliquid nesciunt. Autem pariatur asperiores quia corrupti omnis sed. Explicabo vero non id omnis perferendis.

Rerum sit eos ab consequatur sed. Quibusdam esse saepe cupiditate quidem saepe quidem. Ipsam qui distinctio sapiente dolor libero velit recusandae. Ipsa laudantium qui non ab.

just google it...you're welcome

Career Advancement Opportunities

April 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. New 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

April 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

April 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

April 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (87) $260
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (146) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
kanon's picture
kanon
98.9
6
CompBanker's picture
CompBanker
98.9
7
dosk17's picture
dosk17
98.9
8
GameTheory's picture
GameTheory
98.9
9
numi's picture
numi
98.8
10
Kenny_Powers_CFA's picture
Kenny_Powers_CFA
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”