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FTEs estimated FTEs budgeted Percentage of
Beginning Ending to maintain in trading FTEs used to
quarter quarter portfolio department maintain portfolio
1/1/90 3/31/91 - - Unavailable
4/1/91 9/30/91 1 8 12.5%
10/1/91 12/31/92 1.5 15 10
1/1/93 9/30/93 2 26.5 7.5
10/1/93 12/31/93 2 24 8.33
At the end of 1993, for example, the front office consisted of 24
individuals working as traders, trading assistants, marketers, or
managers. Seven of the 24 individuals were traders of interest
rate products (more specifically, 1 was the desk head, 2 were
traders of U.S. dollar swaps, 1 was a trader of Canadian dollar
swaps, 2 were traders of interest rate options, and 1 was engaged
solely in modeling). The remaining 17 individuals were financial
derivative marketers and trading assistants. For purposes of the
fourth quarter of 1993, FNBC’s finance department ascertained
that managing the current portfolio of interest rate swaps,
commodity swaps, swaptions, and interest rate guarantees would
require 2 of the 24 employees (i.e., 8.33 percent). The duties
of the FTEs would include making sure that the portfolio remained
risk balanced (which would be primarily the responsibility of
traders and trading assistants) and attempting to transfer some
or all of the portfolio to other swaps dealers (which would
primarily require the time of traders and trading assistants,
with participation of other trading department personnel as
needed). FNBC attributed 8.33 percent of the budgeted front
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