TITLE of the STUDY the Title of the Study Is ³A Study on FIMMFX
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TITLE OF THE STUDY The title of the study is ³A study on FIMMFX instruments and the process of Investigating & Validating them at HMD Department, Thomson Reuters Bangalore´ OBJECTIVES OF THE STUDY The objectives of the study are as follows:- 1. To understand the basic operations at FIMMFX pricing team HMD department 2. To know the various instruments handled by FIMMFX team HMD department 3. To know and understand how the prices of different instruments are validated. 4. To understand the flow of prices to different products. 5. To learn and understand the process of solving queries if clients suspect the prices. SCOPE OF THE STUDY y Operations related to Historical pricing of all instruments related to Fixed Income, Money Market and foreign Exchange. y Operations inside Numeric data architecture y End of the day trading prices y Indicative prices for all instruments and not traded prices except if the prices are from the stock exchanges. OUT OF SCOPE y Non-historical prices like real time prices. y Bonds (RICs) not available in NDA LIMITATIONS y Numeric data architecture (NDA) is very vast like an ocean; hence all features of NDA cannot be covered. It will take minimum of 5 years to know the entire features of NDA. y Not getting access to all the processes carried out at FIMMFX pricing team. y The entire process is limited only to Thomson Reuters Company. y The scope of the study is mainly concern for the fulfillment of academic purpose and as per company permissions. y Most of the data are highly confidential. COMPANY PROFILE Thomson Reuters is an information company created by the Thomson Corporation's purchase of Reuters on 17 April 2008. Thomson Reuters shares are listed on the Toronto Stock Exchange (TSX: TRI) and the New York Stock Exchange (NYSE: TRI). Thomson Reuters is headquartered in Midtown Manhattan, New York City, USA. The Woodbridge Company, a holding company for the Thomson family of Canada, owns 53% of the group which operates in 100 countries, and has over 55,000 employees. The Thomson Corporation The Company was founded by Roy Thomson in 1934 in Ontario as the publisher of The Timmins Daily Press. In 1953 Thomson acquired the Scotsman newspaper and moved to Scotland the following year. He consolidated his media position in Scotland in 1957 when he won the franchise for Scottish Television. In 1959 he bought the Kemsley Group giving him control of the Sunday Times. He separately acquired the Times in 1967. He moved into the airline business in 1965, when he acquired Britannia Airways and into oil and gas exploration in 1971 when he participated in a consortium to exploit reserves in the North Sea. In the 1970s, following the death of Lord Thomson, the Company withdrew from media selling the Times, the Sunday Times and Scottish Television and instead moved into publishing, buying Sweet & Maxwell in 1987. In 1989, Thomson Newspapers was merged with The Thomson Corporation. In 1996 The Thomson Corporation effectively doubled its size and ensured future profitability by purchasing West Publishing, a purveyor of legal research and solutions including Westlaw Reuters The Company was founded by Paul Julius Reuter in 1851 in London as a business transmitting stock market quotations. Reuter set up his "Submarine Telegraph" office in October 1851 and negotiated a contract with the London Stock Exchange to provide stock prices from the continental exchanges in return for access to London prices, which he then supplied to stockbrokers in Paris in France In 1865, Reuters was the first organization to report the assassination of Abraham Lincoln in London. The company was involved in developing the use of radio in 1923. It was acquired by the British National & Provincial Press in 1941 and first listed on the London Stock Exchange in 1984. Reuters began to grow rapidly in the 1980s, widening the range of its business products and expanding its global reporting network for media, financial and economic services: key product launches included Equities 2000 (1987), Dealing 2000±2 (1992), Business Briefing (1994), Reuters Television for the financial markets (1994), 3000 Series (1996) and the Reuters 3000 Xtra service (1999). Post acquisition The Thomson Corporation acquired Reuters Group PLC to form Thomson Reuters on April 17, 2008. Thomson Reuters operated under a dual-listed company (³DLC´) structure and had two parent companies, both of which were publicly listed ² Thomson Reuters Corporation and Thomson Reuters PLC. In 2009 it unified its dual listed company structure and stopped its listing on the London Stock Exchange and NASDAQ. It is now listed only as Thomson Reuters Corporation on the New York Stock Exchange and Toronto Stock Exchange (symbol: TRI). Thomson Reuters brands include Sweet & Maxwell in the UK and West Publishing in North America. Reuters and Westlaw are global brands. Company Operations The chief executive officer of the combined company is Tom Glocers, who was the chief executive of Reuters, and the chairman is David Thomson, who was the chairman of Thomson. The Company is organized into two divisions: y Markets Division: formed from integrating Thomson Financial with Reuters. o Sales & Trading o Enterprise o Investment & Advisory o Media y Professional Division: o Legal ± formerly North American Legal and Legal & Regulatory; primarily West, makers of Westlaw. o Healthcare & Science ± formerly Thomson Healthcare and Thomson Scientific o Tax & Accounting ± formerly Thomson Tax & Accounting Thomson Reuters shares are listed on the Toronto Stock Exchange (TSX: TRI) and the New York Stock Exchange (NYSE: TRI). ORGANIZATIONAL CHART OF THOMSON REUTERS SOME OF THE DEPARTMENTS UNDER ENTERPRISE: 1. HISTORICAL MARKET DATA 2. FUNDAMENTALS 3. PERMISSIONING 4. ESTIMATES 5. MONEY REFERENCE 6. MONEY REAL TIME ORGANIZATIONAL CHART OF HISTORICAL MARKET DATA (HMD) DEPARTMENT, BANGALORE (FIMMFX PRICING TEAM) PRODUCTS AND SERVICES OFFERED BY THOMSON REUTERS 1. Financial 2. Health care 3. Legal 4. Media 5. Science 6. Tax and Accounting Financial: TR provides comprehensive information solutions for financial market professionals. The financial products and services offered by Thomson Reuters are as follows: a. Corporate Services: Targeted to Investor Relations, Corporate Communications, and Business Intelligence functions. b. Deal Making: Leading provider of products to the world¶s investment banks, advisory firms, private equity firms, consulting firms and law firms c. Investment Management & Research: Our products help asset management professionals track investment ideas, view portfolio performance, optimize risk d. Wealth Management: Our easy-to-use wealth products let data flow seamlessly from your back-office to your fingertips e. Commodities & Energy: Specialist news, rich content and market intelligence, bespoke analytic tools, and order routing abilities via a single desktop solution f. Equities & Derivatives: Solutions deliver a complete and simplified workflow via a combination of content, transactions and collaboration tools g. Fixed Income: Comprehensive news, prices, market data and tools spanning the complete trading cycle for the global fixed income markets h. Foreign Exchange & Money Markets: Trade instantly on multiple venues, from a single platform with real time prices in over 170 currencies, instruments and derivatives i. Post Trade Services: Post Trade Services enables true straight-through processing, reducing your costs and operational risk as well as improving efficiencies j. Back Office & Accounting: Our solutions empower companies to centralize and optimize their global operations and reduce settlement costs and better manage risk k. Hedge Fund Solutions: Time-series databases, real-time data, and cross-asset analytics, provide solutions linking investment decisions to trade execution and the back-office l. Quantitative Research and Trading: Differentiated content, timely data, analytics and interoperability critical to the generation of alpha in high frequency trading m. Pricing and Reference Data : Products and services to manage valuation risk and handle pricing, content and reference data integration, distribution and management n. Risk Management: Maximize your investment returns. Monitor your enterprise- wide and desk-level risk and P&L exposures in real-time. Increase the operational efficiency of your trading infrastructure to reduce costs and improve your ROI o. Individual Traders/Investors: Trading and investment solutions for individual investors, advisors and small corporations p. Independent Advisors: Tools and market data solutions for independent financial advisors Health care: Provide Critical information for healthcare delivery and management. TR offer products and services for: a. Clinical Decision Support solutions: Clinical Decision Support solutions help pharmacists, nurses, physicians, and public and environmental safety professionals improve clinical outcomes by reducing medication errors, enhancing disease and condition management, and improving clinical workflow. b. Health plans: Discover insight through data-driven innovations for better plan design, proactive care management, more responsive customer reporting, transparent provider performance measurement, and pay-for-performance initiatives ² leading to increased market share c. Hospitals and Health care providers. d. Pharmaceuticals: Demonstrating value. Maximizing market uptake. Thomson Reuters has a proven track record of providing rigorous research, real-world data, and analytics to support internal marketing