Trends in Finance

1
Trends in Finance

• Krannert Graduate School of Management
• Purdue University
• Masters of Science in Finance (MSF)
• Andrew Greta (MBA99)
• 23 July, 2008

2
Overview

• Personal Background
• Class Background
• Finance Trends
• Advice Recommendations

3
Personal Background

• BS Econ (Purdue) 92
• MBA Finance (Krannert) 99
• TheStreet.com (IPO)
• GE Capital (Business Development, MA)
• CME Group (Chicago Mercantile Exchange)

4
Class Background

• Business / Finance undergrad?
• Years work experience?
• US vs. International?
• Future goals corporate finance, accounting,
  quantitative finance, other?

5
Finance Trends

• Globalization
• Connectivity
• Efficiencies
• Derivatives

6
Globalization

• Economic Growth
• Financial Tools Instruments
• Global Standards
• Accounting (e.g. GAAP, SOX)
• Technology Protocols (e.g. FIX)
• Connectivity of Markets...

7
Efficiencies

• Rise of Hedge Funds
• Black Box Algo Trading Technology
• Challenges to CAPM, Black-Scholes (practitioners
  vs. theorists)

8
Connectivity
9
Derivatives
Daily Orders Quotes
RTT (in milliseconds)
CME Group Average Daily Order Volume vs.
Average Round Trip Response Time (RTT)
Average Daily Order Volume
Average RTT
Market Data
10
Recommendations

• Accounting
• Interpersonal Skills
• Krannert as a Foundation
• Network!

11
Further Reading

• Capital Ideas Capital Ideas Evolving by Peter
  Bernstein
• Fischer Black and the Revolutionary Idea of
  Finance by Perry Mehrling
• Fooled by Randomness by Nicholas Taleb
• Liars Poker by Michael Lewis
• The Smartest Guys in the Room by Bethany McLean
  Peter Elkind
• Never Eat Alone Keith Ferrazzi
• Journal of Finance (original papers by Black,
  Scholes, Merton, Fama).