Tuesday, July 19, 2016 06:00 PM IST | 08:30 PM SGT | 12:30 PM GMT Introduction: Recent global event such as Brexit and the subsequent volatility in the currency market has spooked a lot of investors. Increase in Risk aversion following such an event is a natural outcome, as market participants exercise caution while trading. However, even during such tumultuous times, automated traders are having a field day. According to media reports, hedge funds using algorithmic trading are regularly outperforming the manual traders, and especially during such stressful market conditions. Informative Session Contents: Biggest trading events so far in this season - Brexit & its impact on different market participants on that day globally - Impact of hike in transaction cost. Case in point: STT hike by SEBI in India - How Algorithmic trading firms have reacted to such events? What it takes to become a Quant/Algo trader? - Industry requirements - Skills and knowledge required - How Quantinsti’s Executive Program in Algorithmic Trading help? Q & A – Ask an Algorithmic & Quantitative Trading Expert Speaker’s Profile: Mr. Nitesh Khandelwal, Co-Founder iRageCapital Advisory Ltd Nitesh has a rich experience in financial markets spanning across various asset classes in different roles. He co-founded iRageCapital Advisory Private Limited, which is a trusted name in the space of providing Algorithmic Trading technology and strategy services in India. He led the business side for iRageCapital and QuantInsti. At QuantInsti, he was also the head of department for training in derivatives & inter-market studies. He’s currently the Director at iRage Global Advisory Services Pte Ltd based in Singapore. He had prior experience in bank treasury (FX & Interest rate domain) and in proprietary trading desk. He did his Bachelors in Technology in Electrical Engineering from IIT Kanpur before doing his Post graduation in Management from IIM Lucknow. Know more about QuantInsti's Algo trading course at http://www.quantinsti.com/epat/

1. QuantInsti
Nitesh Khandelwal
July 19, 2016
Algorithmic Trading & Recent Market Events

2. Market Event
2
Anything significant that can impact
the markets in terms of price
movement or market microstructure
Planned Events with
Unknown Outcome
Unplanned Events
Planned Events with
Known Outcome
Volatility: Extremely High
Profit Potential: High
Disruption: High
Price Volatility: High to Extremely High
Profit Potential: Extremely High
Disruption: Limited
Volatility: Low
Profit Potential: Low
Disruption: Limited

3. The Swans
BREXIT $ 2 trillion wiped out
GBP crashed by 10%
Margin requirements shot up
STT Hike
SNB
SNB Removes
Peg with Euro
0
50000
100000
150000
200000
1 2 3 4 5
May-16
Jun-16
STT increased from
0.017% to 0.05%
from Jun 2016
Day of RBI Policy
Announcement
Daily Nifty Options Volume

4. Impact on HFT
4
Source: http://blogs.wsj.com/moneybeat/2016/06/24/virtu-shares-rise-as-trading-volume-soars-on-
brexit-fears/
It wasn’t the STT hike but the fall in volume
it led to, that hurt HFT and other market
participants temporarily
Source: http://www.efinancialnews.com/story/2015-01-22/high-speed-firms-profit-from-swiss-franc-
move
http://m.dailyhunt.in/news/india/english/business-standard-epaper-bizzstand/stt-hike-on-options-to-pinch-
high-volume-traders-newsid-53872418

5. BREXIT Impact
• FX volumes multiplied on June 23-24
• Significant activity over the whole month
• Planned event  Liquidity didn’t dry up totally
• Participation from Banks & Non-banks alike
• Liquidity ensure smooth transition unlike SNB
event
5

6. What helps HFT makes money?
6
V
O
L
U
M
E
S
V
O
L
A
T
I
L
I
T
Y
MARKET MAKING
ARBITRAGE
ML/DIRECTIONAL
MR NEWS/Sentiment
Low Volatility: Bid Ask Spread
High Volatility: Multi Exch/Asset, Lead/Lag
Volatility: Results in disparity
Volume: Opportunities
Multiple Trades
Tick based decisions
Early Reaction
Unplanned Events: Extra Bonus
FACTORS STRATEGY LOGIC

7. No Free Lunches
7
Where else?
• Colo/Datacenters
• Trading Lines
• Inter Destination lines
• Technology Development
• Hardware
• Salaries
• Reasonable gestation period between infra/tech investment & returns
• Technology disruption
• Business Environment Changes

8. Skill Sets Overview
8
Number
Crunching &
Patterns
Mathematical
& Statistical
Understanding
Connections
Understanding
of Technology
& Market
Microstructure
Typing Speed!
Financial
Computing &
Infrastructure
Financial
markets
understanding
Financial
Markets
Understanding
Conventional Trading Success Recipe
Algorithmic Trading Success Recipe

9. What is EPATTM
Executive Programme in Algorithmic Trading
• 6-months long online programme
• 100 hours of live interactive lectures
• 200 hours of additional course work
• Live industry project under mentorship of practitioners
• Industry experts and professionals as teaching faculty
• A pool of more than a dozen faculty members including Dr. Ernest Chan,
Rajib Ranjan Borah, Dr. Yves Hilpisch
• 24/7 access to content through new age online learning portal (LMS)
• Dedicated support team for quick query resolution
9

10. EPATTM Curriculum

11. EPATTM Modules
Module 1: PRIMER
Module 2: INTRODUCTION
Module 3: STATISTICS with EXCEL
Module 4: OPTIONS, DERIVATIVES and RISK
Module 5: ADVANCED STATISTICS with R
Module 6: QUANTITATIVE TRADING STRATEGIES
Module 7: BUSINESS ENVIRONMENT
Module 8: ALGORITHMIC TRADING PLATFORM
Module 9: PROJECT/Final Exam
11

12. Opportunities
12
Distribution of
current openings at
QuantInsti Placement
Cell currently.
Research Analyst
12%
Equity Sales
6%
JavaProgrammer
5%
LFT/HFT
11%
Quant Analyst
17%
Quant
Developer/Progra
mmer
9%
Quant / Algo
Trader
6%
Algo Product
Head
1%
Head Algo
Risk
1%
Derivative/Equity
Trader
3%
Advisory
6%
Strategy
Developer
2%
Senior Manager:
Product
Development and
Maintenance
2%
Others
17%
Trading Strategist
2%
Job Openings

13. EPAT Alumni
13

14. EPAT Alumni
14

15. ThankYou
Merci
Danke
Gracias
Arigato
Asante
Grazi
Shukriya
contact@quantinsti.com/+91–9920–44-88–77/+65–9057–8301
GoAlgo!JoinQI’sEPATTM (ExecutiveProgrammeonAlgorithmicTrading)
Visit:www.quantinsti.comformoreinformation.
Question & Answers

16. To Learn Automated Trading
Email: contact@quantinsti.com
Connect With Us:
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