View from City Road: Warburg looks at its options
Thursday 04 February 1993
In effect it has admitted its mistake by setting up a working party to examine the issue and last year recruited 24 people in equities, fixed interest and advisory departments. In the context of the total workforce of 3,000 this is insignificant and means Warburg remains far behind its rivals. However, it continues to recruit and is currently hiring derivatives systems specialists.
Warburg has missed much of the growth in the market already. Volumes on the London International Financial Futures and Options Exchange almost doubled last year and the over-the-counter market - professional investors dealing direct with counter- parties rather than on an exchange - is ballooning.
But both Liffe and the OTC will continue to grow and Warburg cannot afford to be left behind, even if margins in these markets are not as high as they once were.
More particularly, skilled use of derivatives would allow Warburg to use more of its own money in transactions while controlling its risks.
Whereas rivals such as Salomon, and to a lesser extent Goldman Sachs, use their own balance sheets for 'proprietary trading', Warburg does not, at least not to anything like the same extent. Once its derivative expertise develops, however, it would be able to use its own money as principal to a greater extent, while limiting its exposures.
Expect Warburg to flex more muscles on its own behalf in the next few months.
- 1 Rice Bucket Challenge: India's take on the Ice Bucket Challenge 'for Indian needs'
- 2 Pamela Anderson rejects ice bucket challenge because of ALS experiments on animals: 'Mice had holes drilled into their skulls'
- 3 ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
- 4 Rubble Bucket Challenge: Ice Bucket Challenge adapted in solidarity with Gazans whose homes have been destroyed in conflict
- 5 Car tax disc changes: Make sure you know the new rules from 1 October or risk £1,000 fine
Pamela Anderson rejects ice bucket challenge because of ALS experiments on animals: 'Mice had holes drilled into their skulls'
ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
The 13 obscure UK laws you didn’t know you were breaking
13 laws you didn't know you were breaking
Car tax disc changes: Make sure you know the new rules from 1 October or risk £1,000 fine
Exclusive: We share blame for creating 'jihad generation', says Muslim strategist
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
Jeremy Clarkson is a cultural tumour and needs to be removed, says comedian Frankie Boyle
Air strikes? Talk of God? Barack Obama is following the jihadists’ script after James Foley beheading
- < Previous
- Next >
iJobs Money & Business
£23000 - £26000 per annum: Ashdown Group: Account Executive / Client Services ...
£36000 - £38000 per annum: Ashdown Group: Executive PA to CEO & Executive Dire...
£25000 - £28000 per annum: Ashdown Group: Generalist HR Administrator - Tunbri...
£45000 - £75000 per annum + benefits+bonus+package: Harrington Starr: Senior C...