Student Fellows visit the CME Group in Chicago

On Thursday, September 18th, CRMER Student Fellows enjoyed of a great visit hosted by the CME Group at the Chicago Board of Trade facilities in downtown Chicago. The Fellows where welcomed by Fred Seamon, Sr. Director, Commodity Research and Product Development and Matt Herrington, a K-State Alumni and Manager, Commodity Research and Product Development at the CME Group.

Fred and Matt led a tour through the CME Group’s now consolidated trading floor, where the Fellows experienced the historic, but now declining “outcry trading” in the traditional grains and livestock pits for futures and options and in the financial products’ pits. Open outcry trading accounts for around 10% of CME Group’s overall volume. Options has a heavier presence in the trading floors compared to futures, due to the complexity of options’ trading.

The tour to the trading floor was followed by a presentation by Bill Lange, Director, Market Surveillance. Market regulation’s overall purpose is to oversee market transactions on the exchange including trades and positions and to identify potential trade practice abuses. We heard about the Market Surveillance’s great emphasis on getting to know their customers, what their business is, and how they manage their risk in order to be able to better serve them and to better comply with the regulators. We learned about how different trading limits apply in different ways to hedgers and speculators and the factors that drive those limits, mainly delivery capacity from the exchange delivery facilities. It was interesting to hear the exchanges opinion about how the 2008 financial crisis influenced the relationship between the exchange and the regulators.

After hearing from outcry trading and market regulation, Jeff Hersh, from Global Account Management, talked to us about electronic trading. CME Group owns probably the world’s largest electronic trading platforms called CME Globex. CME Globex serves a wide variety of products and clients from around the globe, accounting for almost 90% of CME Group’s trading volume. Jeff also discussed about equal access and data distribution which guarantees fairness for market participants. In that direction, trades on Globex get registered by the matching engines on a first come, first serve basis. This is important to mention due to the ongoing controversy regarding market unfairness, specially relating to HFTC (High Frequency Trading) firms enjoying from speed benefits mainly in the stock markets.

Lastly, Jack Weaver, former trader on the CBOT trading floor, K-State alumni and now a personal trader (trading with his own funds), shared his personal experiences and interest in the futures markets since he was a kid, when he used to compare his profits from hog sales across years. Jack shared how the introduction of electronic trading changed his modus operandi, especially, the introduction of electronic trading allowed him to trade more variety of asset classes. He also stressed the importance of maximizing the use of strengths while minimizing weaknesses, which is key to being a successful trader. More narrowly, to know the behavior/performance of cash markets and timely access to good data, are key factors for successful traders.

The Fellows at the Center for Risk Management, Education and Research greatly enjoyed the financial markets experience and knowledge shared by the speakers. We very much appreciate CME Group’s hospitality and commitment to education through their support to the center.

Student Fellows in the Great Board Room at the Chicago Board of Trade

Student Fellows in the Great Board Room at the Chicago Board of Trade

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Student Fellows Visit Aon Risk Solutions

The Student Fellow’s final industry visit on the Chicago trip was on Friday, September 19TH with Aon Risk Solutions, which is a division Aon plc. Ann Gariti, Managing Director of Sales at Aon Risk Solutions, greeted the group and gave a brief overview of Aon plc’s business, which is summarized on their website, “Aon is the leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services.”

Ms. Gariti then arranged for a panel of Aon Risk Solutions employees to come in and talk with the Fellows about their careers. The panel consisted of Ryan Kraus, Kate Simons, Britt Woodbury, and Patrick Wilson, who have been with Aon for 12, 6, 2, and 1 years respectively. With such varied experience, the panel provided an immense amount of insight about careers in general as well as careers with Aon Risk Solutions. The panel was very candid with the Fellows and answered all of the Fellows’ questions as well as happily visiting with some of the Fellows individually.

Ms. Gariti then led the Fellows through an exercise entitled “What do Aon Risk Solutions Brokers Do?” The exercise provided a good overview of a day in the life of an Aon Risk Solutions Broker covering areas such as consulting, optimizing risk costs, and building insurance programs around a client’s needs. The Fellows finished their visit to Aon with lunch and a visit to the 80TH floor of the Aon Center for breathtaking views, and local insight on the sights from Ms. Gariti.

The Fellows would like to extend thanks to Aon Risk Solutions, Ann Gariti, and the members of the panel for their time and insights, which they most graciously shared with the Student Fellows.

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Applications due tomorrow: Friday, September 12 for Risk Management Student Fellows

Applications are now being accepted for the 2015‐16 class of Risk Management Student Fellows. The application deadline is September 12, 2014. The Student Fellow program provides a foundation for undergraduate and graduate students to gain hands‐on risk management skills and knowledge. More information is available at the CRMER website at http://www.k‐state.edu/riskmanagement/.

Students accepted to the program will receive fellowship stipends for three semesters. Target students include anyone interested in risk management with three semesters left in their program including graduate students as of Spring 2015 semester.  The program has high expectations for student academic performance as well as risk management interest and engagement, so we will be selective in reviewing applicants.

Applications should include a resume, a statement of career objectives, and contact information for two or more academic references. Send resume, reference list, and career objective statement via email attachments to Ted Schroeder, tcs@ksu.edu by September 12, 2014 (he will confirm receipt of your application via email reply). Contact Ted Schroeder, Waters Hall 219, if you have questions.

Posted in Center news, Research and education updates

CRMER Student Fellows Visit Gavilon, LLC

                Gavilon Visit

The Center for Risk Management Education and Research (CRMER) student fellows visited Gavilon, LLC in Omaha, Nebraska on Friday, September 5, 2014.  Gavilon is a founding partner of CRMER and has continually offered their support from the beginning.

Ed Prosser, a CRMER advisory council member and Vice President of Agricultural Trading at Gavilon welcomed the student fellows to their new facility.  Ankush Bhandari, Director of Economic Research at Gavilon, joined Prosser for a presentation entitled “Emerging Trends in Agriculture and Energy.”  They set the stage for the day by providing student fellows with the basics of what factors affect supply and demand.  Much of the discussion was centered on increasing world populations and income as well as government policies that affect bio-fuel and energy prices.  Prosser emphasized that demand is easier to forecast than supply and that higher grain prices in the recent years have shifted the acreages among crops.  Bhandari provided the student fellows with statistics that illustrated the current world economic situation. 

The Gavilon Risk Management Team followed with a discussion addressing Gavilon’s risk preferences and how they analyze the company’s position in the market.  Robert Wagner, the Chief Risk Officer at Gavilon, and his team educated the student fellows on the statistical formulas and software they use to ensure the company will be able to withstand worse-case scenarios. 

Ed Prosser emphasized that the main job of a trader is to make sure he or she is in business tomorrow.  That is an excellent point for the student fellows to keep in mind as they move into their future careers.

At the end of the afternoon, Jill Shedek, Associate Talent Resource Manager at Gavilon, informed the student fellows on career opportunities for upcoming graduates.  The student fellows look forward to working with Gavilon, LLC in the future and thank them for their continued support.  Companies like these allow students to broaden their horizons and become better prepared for their future careers. 

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Call for applications to the 2015-2016 class of Risk Management Student Fellows

Applications are now being accepted for the 2015‐16 class of Risk Management Student Fellows. The application deadline is September 12, 2014. The Student Fellow program provides a foundation for undergraduate and graduate students to gain hands‐on risk management skills and knowledge. More information is available at the CRMER website at http://www.k‐state.edu/riskmanagement/.

Students accepted to the program will receive fellowship stipends for three semesters. Target students include anyone interested in risk management with three semesters left in their program including graduate students as of Spring 2015 semester.  The program has high expectations for student academic performance as well as risk management interest and engagement, so we will be selective in reviewing applicants.

Applications should include a resume, a statement of career objectives, and contact information for two or more academic references. Send resume, reference list, and career objective statement via email attachments to Ted Schroeder, tcs@ksu.edu by September 12, 2014 (he will confirm receipt of your application via email reply). Contact Ted Schroeder, Waters Hall 219, if you have questions.

Posted in Center news, Notes from the faculty

Ethan Dhuyvetter on the job!

Ethan Dhuyvetter at ICAST (biggest fishing trade show) with Brent Chapman. This summer, Ethan did media and video work. He also represented Dyna-Tek.

Ethan D

ICAST fishing show

Ethan D

Representing Dyna-Tek

 

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Teaching students to turn risk into opportunities

Greg and Mamie CaseProviding opportunities for K-State students and helping them develop into tomorrow’s leaders are goals of Greg and Mamie Case, Winnetka, Illinois. They’ve donated more than $1 million to K-State’s Center for Risk Management Education and Research (CRMER) to create the Greg and Mamie Case Integrated Risk Management Endowment.

The center engages students, both undergraduate and graduate, and industry partners in innovative education and research, advancing their risk management skills and knowledge. The center is a joint effort of faculty and students from K-State’s Colleges of Agriculture, Business Administration, Engineering, and Arts and Sciences. Additional partners from across campus also participate.

“By supporting the Center for Risk Management Education and Research, we can create opportunities for interested students to learn that risk is opportunity, that businesses can achieve their desire for predictability by understanding risk and how it will impact their organizations,” said Greg Case, K-State alumnus and president and CEO of Aon, a global risk management and HR solutions firm. “Gaining this perspective through the center will allow those students to understand that the challenges associated with managing risk are enormous, but the organizations that confront risk head on will stand to make tremendous gains for their stakeholders.

The funds from this endowed gift will be used for student fellowships, student educational experiences, program development, faculty support and other needs determined by the center’s director.

“I hope this gift can, in some small way, elevate the discussion around risk management,” Case said. “With the growing presence of non-traditional risks such as cyber risk, pandemic risk and social media risk, it is important that we have a strong national dialogue, not only in board rooms but on college campuses, on what we need to do to address these challenges because of the impact they and other such risks can have on our global economy.”


Written by Marisa Larson, KSU Foundation

Click here to make a gift online via the Kansas State University Foundation. For more information about ways to support the Center, contact Emilie Fink at emilief@found.ksu.edu or 785.532.7571.

Posted in Center news