Having said that, many managers who should not be responsible for derivatives operations hang on to them tenaciously because of the cachet of being perceived as sophisticated and cutting-edge. The other type of organization is by function. Cash traders and salespeople work together, dealing with clients who want cash products exclusively. They are also separated by asset class. Cash foreign exchange people will not enter into transactions in cash bonds.
Clients get seamless service across products.
Instead of talking to five different contacts at a bank for their various needs, they talk to one person. Instead of having five different kinds of confirmation contract, they have one. It is easy for the bank to structure products that encompass more than one asset class. Hedging can be problematic. Because the bank has organized its dealing room along functional lines, the cash trader has no interest or desire to see the derivatives desk do well.