FI: Financial institutions

What are financial institutions?

Financial institutions are public or private institutions, which have an economic or financial mission and provide financial services to their clients. This includes insurance companies, banks, pension funds, asset managers, mutuals and many others. 

Financial institutions represent a special type of customer since they mainly use: 

• Market solutions to:
  • Invest (debt or equity securities);
  • Use the leverage provided by derivatives;
  • Hedging;
  • Finance themselves (repo, securities lending).
• Securities services to:
  • Outsource administrative tasks (middle and back office);
  • Manage asset custody;
  • Fund services (accounting, regulatory and tax reporting, valuation calculations);
  • Provide issuer services.