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Deep Dive With JLN: How Can The Financial Industry Draw In The Next Generation Of Talent?

Note: Scroll to the bottom to view the video in three smaller segments. 

The future for the financial markets is bright, even if the headlines don’t always say so.

John Lothian News’ CEO Jim Kharouf sat down with Brian Mehta, chief marketing officer at Trading Technologies, and Doug Monieson, partner at Hyde Park Angels, to talk about what will attract the next generation of traders and professionals into this space. From college outreach programs like TT CampusConnect to a variety of new education, training, competitions and platforms that open the world to new traders with new ideas, both see the financial markets as having much to offer.

“Getting companies involved is really important because it’s a great two-way street,” Mehta said. “It’s good for companies to see the potential talent out there. But it’s also important for the students to see the different possibilities. It’s not just going into a trading firm, or it’s not just going into a technology firm, but what about the exchanges? What about the other partners we work with that open the capital markets to students?”

Creating community

One aspect of the industry when trading floors were thriving was the sense of community. Trading education site tastytrade, for example, has focused heavily on providing content on how to trade options. Start-up TopstepTrader is offering trader education as well as the potential for funding good traders with an unprecedented 80-20 split on trading profits. (That’s 80 percent for the trader).

There also has been a rise in the number of platforms which allow algorithmic traders to test out ideas and potentially get funded. Several have garnered attention, including: Quantopian, QuantConnect and CloudQuant. Those platforms are using technology to access the markets in ways that were not open to them before. This leveling of the playing field for anyone, anywhere, is a major breakthrough for industry veterans like Monieson.

“The ability to have a whole toolbox to let people loose was the whole idea behind going electronic, which was ‘Let’s open this up to the world.’ The volume will explode and we’ll get more players,” Monieson said.

Mehta said the idea of democratization of technology underlies the new TT trading platform, which uses the cloud for some functions and more traditional software tools for trading. That architecture allows for customers to access the system from anywhere in the world and on desktops as well as mobile devices. TT isn’t alone in this strategy, as other trading vendors have also pursued functionality that allows customers easy access and streamlined trading.

“For younger traders, they are on 24-7,” Mehta said. “Because with the way they view opportunity, it doesn’t matter when it is or where it is.”

Potential

Given all the tools that are emerging for education, training and trading, Mehta and Monieson agree that the future is indeed bright for the financial markets.

“I’ve been a trader in this industry for 25 years and this is an industry that constantly reinvents itself,” Monieson said. “You’re now going to have a new generation that is comfortable with programming, comfortable with data analysis and have the tools to be able to do it.”

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Want to see just one section of the interview? Click on the detailed segments below

Deep Dive Short: The Next Generation

In segment one, Brian Mehta and Doug Moneison talk about educational efforts and how firms are trying to draw in new talent to the trading community, as well as the push toward democratization of access to the markets around the globe. They also address the question: what are firms looking for today?

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Deep Dive Short: Creating A New Community

The trading floor was a community. In today’s algo-driven marketplace, how do we create that sense of community for the next generation? Brian Mehta and Doug Moneison talk about firms like tastytrade, Topstep Trader and Quantopian which are not only aimed at the trading community but also funding new ideas.

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Deep Dive Short: Problem Solved:  The Tools You Need

The industry is always trying to grow. Brian Mehta and Doug Moneison talk about the selling points for bringing new talent into the industry, from giving individuals cutting edge technology tools to touting the entrepreneurial opportunities.  

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About Author

Kharouf is CEO of John J. Lothian & Co. and editor-in-chief of John Lothian News (JLN). He edits the John Lothian Newsletter, MarketsWiki and MarketsReformWiki.