Financial Times - Lexiconhttp://lexicon.ft.comTerm of the Day from the Financial Times Lexiconen(PICS-1.1 "http://www.classify.org/safesurf/" L gen true for "http://www.ft.com/" r (SS~~000 1))&copy The Financial Times Ltd 2016 'FT' and 'Financial Times' are trademarks of The Financial Times Ltd. See http://www.ft.com/servicestools/help/terms#legal1 for the terms and conditions of reuse.client.support@ft.comTue, 16 Jun 2009 01:42:55 +0100Sun, 29 May 2016 09:27:36 GMTNewspapers15http://lexicon.ft.comhttp://lexicon.ft.comFinancial Timeshttp://im.media.ft.com/m/img/rss/RSS_Default_Image.gifhttp://lexicon.ft.comflow productshttp://lexicon.ft.com/Term?term=flow products<P>A term used in banking for standard financial instruments traded across exchanges such as cash equities and bonds. </P> <P>These are sales and trading of simple products such as fixed income and foreign exchange on behalf of clients - rather than riskier <A href="http://lexicon.ft.com/term.asp?t=proprietary-trading">proprietary trading</A>. </P> <P>"Flow" is more associated with trading of products involving debt (fixed income), interest rates, currency and commodities. </P> <P>The distinguishing feature of flow trading is that it requires the bank to put up relatively modest capital by comparison with, for example, the more complex forms of derivatives. It has therefore become more popular with large banks since the credit crisis. <BR><BR><STRONG>View</STRONG><BR><A href="http://www.ft.com/cms/s/0/fe72b368-ceff-11de-8a4b-00144feabdc0.html">Investment banks gain by going with the flow<BR></A><BR></P>Mon, 22 Mar 2010 15:09:51 +0000&lt;P&gt;A term used in banking for standard financial instruments traded across exchanges such as cash equities and bonds. [ref url=&quot;&quot;]Tony Jackson, Columnist, Financial Times[/ref]&lt;/P&gt; &lt;P&gt;These are sales and trading of simple products such as fixed income and foreign exchange on behalf of clients - rather than riskier &lt;A href=&quot;http://lexicon.ft.com/term.asp?t=proprietary-trading&quot;&gt;proprietary trading&lt;/A&gt;. [ref url=&quot;&quot;]Megan Murphy, Investment Banking Correspondent, Financial Times[/ref]&lt;/P&gt; &lt;P&gt;&quot;Flow&quot; is more associated with trading of products involving debt (fixed income), interest rates, currency and commodities. [ref url=&quot;&quot;]James Wilson, Frankfurt Correspondent, Financial Times[/ref]&lt;/P&gt; &lt;P&gt;The distinguishing feature of flow trading is that it requires the bank to put up relatively modest capital by comparison with, for example, the more complex forms of derivatives. It has therefore become more popular with large banks since the credit crisis. [ref url=&quot;&quot;]Tony Jackson, Columnist, Financial Times[/ref]&lt;BR&gt;&lt;BR&gt;&lt;STRONG&gt;View&lt;/STRONG&gt;&lt;BR&gt;&lt;A href=&quot;http://www.ft.com/cms/s/0/fe72b368-ceff-11de-8a4b-00144feabdc0.html&quot;&gt;Investment banks gain by going with the flow&lt;BR&gt;&lt;/A&gt;&lt;BR&gt;&lt;/P&gt;