An Informative Seminar in Understanding FX and Equity Trading

Chinese Finance Association of America (CFAA) successfully hosted a trading seminar at the Union League Club of Chicago on Thursday, August 13th, 2009. Under the backdrop of financial markets and macroeconomic developments, the seminar focused on two topics of current interest: foreign exchange and equity volatility arbitrage. It generated a warm reception and very positive feedback from the attendees. More than 70 CFAA members, friends, and other financial professionals attended the seminar, marking another strong attendance of CFAA events.

Mr. George T. Dowd III, head of Chicago foreign exchange desk, Newedge LLC, spoke on foreign exchange trading. Mr. Dowd started with outlining foreign exchange (FX) cash and derivative markets and other trading infrastructures. He then distinguished between currency risk hedging, currency overlay strategy, and trading in FX as a single asset class. Mr. Dowd also discussed many current macroeconomic issues, such as the status of Japanese Yen in carry trade and as a safe haven currency, as well as the prospects for US dollar and possible inflation risk. 

Dr. Anlong Li, director of financial engineering, Spot Trading LLC, gave a wonderful presentation on equity volatility arbitrage. Dr. Li focused on the high-volatility market environment during the past and current financial crises that have generated great opportunities and interests in volatility arbitrage strategies. He then reviewed basic concepts and techniques.