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.
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.
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.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.
We are continually impressed by the breadth of interesting people we encounter in the fintech arena. Whether they are traders, technologists, media or even marketers (yes, believe it or not), there are so many great stories behind the scenes from the people that make this industry exciting. So, welcome to “Five Questions with…,” a new Trade Talk series in which we interview notable market participants and technology thought leaders about a few common—and a few unique—industry-related subjects. Our first chat is with Danny Riley of MrTopStep, a multi-channel outlet dedicated to financial news and education. Danny is passionate about the industry and he educates while he entertains on his Periscope channel. Read on to learn how Danny came to found MrTopStep, what he looks for in a trading execution platform and more. And, hope you enjoy the series.
How did you get involved in trading, and what path took you to where you are now?
Danny: Less than a year after high school, I received an offer to work as a runner for Agra Trading in the grain room of the Chicago Board of Trade. As soon as I walked on the floor, I knew I wanted to be in the industry. After working in the grain pit, I moved to the bond floor, and from there, I ended up at the CME, where I built the largest-volume S&P futures desk on the floor. As the demand for open outcry decreased, I moved my desk from futures to S&P options, where I filled orders electronically.
Before leaving the floor in December of 2014, I founded a company called MrTopStep.com to help educate both professional and retail traders about many of the rules and methods I learned while on the floor. Since my move from the floor, I have had to work out the challenges of transitioning from the energy and feel of the floor to trading on the screens. I have found that volume imbalance and footprint charts have helped me recreate some of the market feel and trading rules I used on the trading floor. Continue Reading →
TT was once again down in Florida to gain key insights from some of the industry’s leading minds at the 41st Annual FIA Conference in Boca Raton. We had the opportunity to meet with the media, partners and customers to talk about how we’ve changed in the past year. Here’s a recap of the eventful week:
Things kicked off with a new initiative on Tuesday, March 15: the inaugural TT/FIA tennis tournament, benefiting Futures For Kids. We were pleased to have a strong turnout, and it was a fun and fit way to meet new people and catch up with longtime industry friends.
The heart of the Boca program began on Wednesday with panels on topics impacting the industry. The Exchange Leaders panel was a big draw, featuring the CEOs of Deutsche Borse, CME Group, ICE, SGX and Hong Kong Exchanges & Clearing. The key takeaway was that these exchange groups — each one of them — are looking to technology to drive innovation and their organizations’ futures.
@ICE_Markets on product dev: Stay close to customers. They say, here’s what I’m trying to solve & then you don’t need an R&D dept. #FIABoca
This website uses cookies for analytics and functionality purposes. To find out more about our use of cookies or to manage your choices, view our cookies policy. To view our privacy policy, click here.ACCEPTREFUSE
You can revoke your consent to accept cookies using the Revoke Consent button.Change Consent
