Why do Securities Services and S&T belong to the same IB department?
1️⃣. What’s Securities Services Actually?
- Although SS belong to the S&T division, they’ve totally different working duties!
- SS job duties include helping AM Firms or Fund Houses to cover their Middle & Back Office’s Functions e.g. Clearing, Settlement, Custody, Fund Accounting, Fund Administration etc.
- As smaller AM Firms/Fund Houses might not have enough resources to serve Middle & Back Office’s functions fully, so they’d outsource these to IBs like Citi, JPM, GS, State Street & HSBC
- In fact, the services provided by SS tend to be regarded as Middle & Back office services. But students who enter the SS team'd also be serving Pitch to clients, so their responsibilities are more related to Sales & front desk work
2️⃣. Why do SS and S&T belong to the same IB department?
- It’s Convenient for sales & pitching!
- Clients on the sales side are the Asset Management Firm/Fund House/PB = target customers of SS!
- sIt is wise for IB to place SS under S&T, as it’d be convenient for Cross-Selling when customers come to their door!
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