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Middle office management is a job type often found in financial services firms. These positions may be responsible for computing numbers, allocating trades and other securities among clients, and confirming client orders. Other industries may have middle office management positions, though the activities will be different. For example, a large retail corporation may use a middle office for getting goods to multiple retail outlets. Individuals working in these positions often need an education, experience, and the ability to multitask in order to handle multiple activities.
Financial services firms often handle many different types of actions for clients. These include investment accounts, active security trades, and insurance policies, just to name a few. In some cases, individuals are not responsible for all activities at one time. This helps prevent fraud and other inappropriate actions when an individual works in middle office management. Supervisors and other managers are necessary to ensure those in these positions are unable to engage in questionable activities.
Each individual in middle office management often does their own work for clients from start to finish. When computing numbers, the manager works on a specific group of items at each time. For example, a client may decide on a certain investment package for retirement purposes. The office manager works up the numbers and presents them. Numbers can relate to any item or information a client desires.
Allocation is important in financial service companies when making stock trades for clients. Middle office management has workers who focus on stock markets throughout the day, making trades. Financial service firms may purchase large blocks of a single stock in order to get the best price for an individual security. Once the trade is complete, a middle office manager allocates each stock to the respective client. This is an end-of-day activity that balances accounts to end trading.
Clients receive account statements that detail all activity for whatever services they receive from the firm and its middle office management. These confirmations help protect the client and allow him or her to understand how his or her money can grow. In some cases, the statements act as a trend report that provides information for altering current practices. The client can work with the middle office management in the services firm to get better at whatever is not working right now. Paperwork is important in this activity, though it may be the least favorite task of office managers.