The office space for workers in the trading and financial sectors is typically referred to as a “trading room” or “front office”. In the past, transactions would be done through a verbal exchange. However, modern trading rooms, instead, use electronic messaging and finance apps.
The advent of the digital age has meant that the required space for trade companies has become smaller. This is good news for businesses which want to save money. They can rent a reasonably modest office area and use the rest of their budget for more important things.
People who manage financial workspaces should be aware that trading rooms are usually equipped with the most recent tech hardware. They will need to make sure this hardware can be installed effectively and replaced when necessary. If a trading room is running on obsolete equipment, it will mean the company itself is falling behind the rest of the industry.
A trading room consists of an open space occupied by numerous desks. Each one focuses on a specific product or section of the market. This could include options, equities, long term and short term. They are organised in a layout which is as efficient as possible. Trading desks have computers and monitors that read out up to date market information.
A typical trading room will be split into several different employee types. Traders attempt to predict trends in the market while offering reasonable prices to sales teams. Once a deal has been made between the trader and the sales department, a reverse trade then begins, either within the institution or through an outside party.
Market-makers act as wholesalers by negotiating with traders. They work with a set standard of terms. Meanwhile, the sales teams create tailored deals for corporate customers with more specific terms. The mood of a trading room is often described as “a Wall Street environment”.