FCS = Flow & Corporate Solutions

The FCS Desk (Flow & Corporate Solutions Desk) is typically a part of an investment bank’s equity derivatives or structured products division. Its main focus is on providing derivative-based solutions for institutional clients, corporate clients, and sometimes private banks.

Flow Business:
- Handles vanilla and light exotic options, such as index and single-stock options.
- Market-making and risk management of liquid derivatives.
- Works closely with sales & trading to provide competitive pricing to clients.

Corporate Solutions:
- Share buybacks using derivatives.
- Equity-linked financing (e.g., margin loans, equity swaps).
- Convertible bond hedging.
- M&A-related hedging strategies.

Structured Solutions for Institutional Clients:
- Offers custom derivative solutions for asset managers, pension funds, and hedge funds.
- May include dispersion strategies, volatility trading, or capital-protected products.

Delta One & Hedging Strategies:
- The desk often works with delta-one products such as equity swaps and forward contracts.
- Risk management strategies include gamma hedging, vega hedging, and skew trades.