Do you understand the difference between front office, back office, and middle office in brokerage activities?

In brokerage activities, the front office, middle office, and back office perform different functions:

• Front Office — this is the division that directly interacts with clients. It includes trading agents, consultants, and sales managers. They are engaged in attracting clients, executing transactions, and servicing clients.

• Middle Office — responsible for risk control and management, transaction verification, compliance with regulations, commission calculations, and reporting. It acts as a link between the front and back offices, ensuring the correctness and safety of operations.

• Back Office — handles technical and administrative support, transaction processing, documentation, calculations, and clearing. It ensures the execution of operations initiated by the front office.