Our Operations Group

• Equity Operations
• | Fixed Income Operations
• | Investment Management Division Operations
• | Information and Exposure Management
• | Clearance and Custody Services
• | Operations Control
• | Business Analysis Group

Fixed Income Operations supports the Firm's Trading, Sales, Banking and Investment Management efforts across the complete range of Fixed Income products.

Fixed Income Operations consists of the middle office and other support groups, organized mostly by product and specialty. Although most groups focus on regional trading and sales activities, several of our groups are responsible for global support in their respective businesses, including foreign exchange and derivative settlements.

The overriding focus for all of these groups is to support the Firm's activities with respect to interest rate and credit-based fixed income cash and derivative products, ensuring that profitability and risk are appropriately managed and reported on behalf of Lehman Brothers' Fixed Income Division.

Fixed Income Middle Office Groups:

• Core Derivatives Middle Office.
• Derivative Finance Middle Office.
• EMG Cash Middle Office.
• EMG Derivatives Middle Office.
• Foreign Exchange (FX) Support (Global).
• FX Options Support (Global).
• Governments Middle Office.
• High Grade Bonds Middle Office.
• High Grade/High Yield/Preferred Syndicates Middle Office.
• High Yield Bank Loans Middle Office.
• High Yield Bonds Middle Office.
• Money Markets/MTNs Middle Office.
• Mortgage-Backed Securities (MBS) Middle Office.
• Municipal Bonds/Syndicates Middle Office.
• Municipal Derivatives Middle Office.
• Preferred Stock Middle Office.
• Reinsurance Derivatives Middle Office.
• Structured Credit Trading Middle Office.
• Whole Loan Mortgages Middle Office.

While each Fixed Income middle-office group has product knowledge specific to the desk that it supports, all groups perform the following key tasks:

• Trade capture for risk and P&L reporting.
• Breakdown and booking of complex derivative and structured transactions for ticketing, risk management and P&L reporting.
• Verification of all trade details for funding, settlement, documentation, and risk and P&L reporting.
• Trade maintenance including sets/resets,

  	“Fixed Income Operations ensures that profitability and risk are appropriately managed and reported”

  change forms and terminations.
• Daily trade and position balancing, reconciliation and exception processing.
• Position and trade monitoring for risk management.
• Verbal or signed trade confirmation with clients, brokers and other counterparties.
• Daily calculation and compilation of trader/desk P&L.
• Creation of client MTM reports on complex derivative transactions.
• DK and fail resolution.
• Interface with Sales, Trading, Banking, Legal, Compliance and clients.
• Month-end balancing, reconciliation and exception processing.
• Monitoring credit limits by client in certain free-settlement businesses.
• Coordination with trustees, agents, investors and other related parties on syndicated and structured transactions.
• New issue/syndication processing, trade capture and deal closing.
• Working with traders and business representatives to design workflows for new products.
• Developing and implementing automation solutions to capture processing efficiencies.

Fixed Income (FID) Operations Support Groups:

Derivative Operations

The group is responsible for confirmation and cash settlement of transactions and brokerage reconciliation and payments within Global Fixed Income Derivatives.

Operations Transaction Management Group

This group is responsible for documenting and following up on Lehman Brothers and client contracts, confirmations and other documentation on Global Fixed Income Derivative transactions. The Operations team focuses on the high-volume flow business in Fixed Income Derivatives.

FID Carry Group

This is a centralized group responsible for reviewing and managing daily and month-to-date carry across all Fixed Income products. Team members are specialists in the carry systems and firm funding processes designed to maximize value for FID businesses.

FID Operations Risk Management

FID Operations Risk Management is focused on improving control over Firm assets and managing ongoing operational risk. Responsibilities include the development of reports, applications and other tools for controlling and tracking operational risk, as well as ongoing coordination with Compliance, Legal, and other Operations areas.

FID Sales Support

The group provides support for FID sales desks across the majority of cash products, focusing primarily on mortgages, high yield and high grade credit, governments, municipals, and emerging markets debt. Functions include client support, trade matching, customer trade allocations, and researching and resolving fails and post-trade date discrepancies.

Derivative Sales Support

The group provides support for FID sales desks across derivative products. Functions include client support, trade matching, customer trade allocations, and researching and resolving fails and post-trade date discrepancies.

Repo Sales Support

The group interacts with clients and the Repo Sales desk to verify trading information and resolve discrepancies on financing trades for institutional clients. Functions include client support, trade matching, customer trade allocations, and researching and resolving fails and post-trade date discrepancies.

Sales Development

This group maintains the data integrity of sales credit information for the Fixed Income Division globally. Business units within the Firm use sales credits as an analytical tool in evaluating many factors, including sales force compensation, client activity and diversification, sales success and profitability.