Which group is primarily involved in the exchange of funds/assets in trading?

The primary group involved in the exchange of funds and assets during trading activities is the Front Office. This group includes traders and sales personnel who are directly engaged in interacting with clients and executing trades. They are responsible for making decisions about buying and selling securities, as well as managing relationships with customers.

The Middle Office supports the Front Office by providing risk management, financial controls, and ensuring smooth execution of trades. The Back Office handles the administrative and operational tasks, such as settlement and clearing of trades, but does not directly participate in trading activities themselves. Regulatory Agencies monitor and enforce compliance rules and regulations, but they are not directly involved in trading and the exchange of assets.

Understanding the distinct roles these groups play is crucial, especially regarding who is responsible for different aspects of trading and fund management. The correct focus on the Front Office highlights its central role in active trading, which involves immediate interactions and decision-making in the markets.