No small task. Indeed not, and consider Figure 2.1 that illustrates the UK's financial market structure as shown in the excellent ISSA Handbook.

Figure 2.1: The UK's financial structure

If we assume therefore that the financial markets are structured into types or categories we can begin to look at the fundamental differences associated with each, explore the characteristics of the markets themselves and the products, which will determine the way in which the operations teams deal with them.

The wholesale and retail markets have different products, processes, procedures and participants. Often the retail market utilizes a combination of wholesale market products so that, for instance, a guaranteed equity index bond offered to the public will utilize the corporate bond market to give the financial return to allow the investors' subscriptions to be returned, and the derivatives market for the option contract on the index to guarantee the increase in the index value. We look at retail markets and products in more detail later in the book. The wholesale markets and distribution businesses of banks are constantly providing and utilizing products to satisfy the needs of financial management and capital generation for corporate clients and investment opportunities for institutions and private clients.

Corporate finance teams provide services to ensure that a client can raise funds to finance trading, research and development and use capital to acquire other businesses as well as defend a client against the predatory instincts of someone else. It is an often-complex process requiring great skill in...