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Welcome to the official blog of Trading Technologies, your source for professional futures trading software.

A New Horizon in the Asia/Pacific Region

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Thomas Price, Director FEX Global
 

FEX Global Pty. Limited (FEX) has contracted with Trading Technologies to provide the exchange’s trading participants with the TT trading platform. The following is a guest post authored by Thomas Price, Director of Financial and Energy Exchange Ltd, the parent company of FEX Global

Over the next decade, the global derivatives world is going to further shift on its axis toward the Asia/Pacific region. This volume and participation migration will present both immense opportunities and challenges to European and American derivatives exchanges.

Global derivatives trading infrastructure has centered primarily on Western platforms and exchanges since the 1970s. When the industry and participants think of iconic exchanges, products and brands, thoughts turn to the likes of the CME, ICE, Nasdaq, CBOE and Eurex. While these infrastructures and brands will remain incredibly powerful, they, and indeed large parts of the derivatives industry, will be more dependent on revenues emanating from Asian markets.

China, now the world’s second biggest economy, is leading the reorientation. As a centralized economy, people take notice when the Chinese government speaks, and the Beijing officials have indeed spoken. The current administration has publicly stated their ambition to further participate in the global derivatives industry.

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When Is a Long Shot a Good Shot?

I recently was interviewed for a podcast by Chat With Traders. I spoke about expected value and the importance of process over outcome. It’s one thing to discuss in general terms the idea of positive expected value and the idea to focus on process rather than outcome. It’s another to actually see it in action.

I’d like to go through a trade we recently had on. This will make the concept concrete.

The idea of expected value is relatively straightforward: one must combine the probability of a financial event occurring and its outcome. For example, consider an investment where there’s a 25% chance of losing $10 and a 75% chance of making $10. Multiply the outcomes by the probabilities to get the expected value. In this case, 0.25 x -$10 + 0.75 x $10 = $5. That’s easy enough.

thetreeofpossibilities
 

The tree of possibilities.

Would you play that game? You likely would.

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Students’ Experience with Commodity Trading Translates into Jobs

The University of Wisconsin-Madison has been a TT CampusConnect partner school since 2014. Sheldon Du, an assistant professor of agricultural and applied economics in the College of Agricultural and Life Sciences, uses both the X_TRADER® and TT® platforms in his Commodity Markets class to help students understand the concept of managing price risk. Read on to learn more about Professor Du, his class and how it’s preparing his students for careers in the commodity markets.

From left to right, trading team members Jackson Remer, Brad Jaeger, Carly Edge, Cory Epprecht, Sam Seid, and Professor Sheldon Du. Not pictured: Nicholas Barber and Hannah Fritsch.
From left to right, trading team members Jackson Remer, Brad Jaeger, Carly Edge, Cory Epprecht, Sam Seid, and Professor Sheldon Du. Not pictured: Nicholas Barber and Hannah Fritsch.
Using real-world commodity-trading software and armed with simulated trading experience in agricultural markets, some University of Wisconsin-Madison students are finding paths to jobs after graduation.

 

“We prepare students by providing the knowledge of the trading software used by professionals and an understanding of how these sometimes-volatile markets work in real time,” says Sheldon Du, assistant professor of agricultural and applied economics.

Du says that the market for Agricultural Business Management majors is promising, and students’ experience with professional software platforms and hands-on simulated commodity trading makes them more attractive job candidates.

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Five Questions with Mike Mayhew, CIO at Trading Technologies

Speed and accessibility are the key benefits most often talked about when promoting the TT® platform. But what is less frequently highlighted is the infrastructure and support structure that keep operations moving smoothly. That responsibility falls on Mike Mayhew, CIO at Trading Technologies. In this edition of “Five Questions with…,” we talk with Mike about his team and the behind-the-scenes work that goes into making the TT platform dependable and secure.

Brian Mehta, CMO

MikeMayhew

What is the scope of your responsibilities as TT’s CIO?

Mike:  My responsibilities span global trading platform operations and support, security and corporate IT. Corporate IT is a well-oiled machine, so typically when I talk about my responsibilities, I focus on trading platform operations and support. In other words, my teams are responsible for the overall availability of TT’s production trading environments. In fact, about 99% of our efforts—whether infrastructure design, change management, security audits or day-to-day ops—are focused on ensuring users have a fast, secure and reliable trading experience.
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