Ted Koly, a graduate student in the Business Administration - Chartered Financial Analyst program in the School of Business, recently took second place in the NYMEX Commodities Challenge open outcry trading competition in New York City.
Koly competed against 54 other students from 10 schools nationwide, including Columbia University, Hofstra University, George Washington University and Syracuse University. It marked the second year Koly competed in the challenge at the New York Mercantile Exchange. In 2007 he placed 5th.
"I'm glad that I was able to improve," said Koly, who will graduate from the five-year program with his master of business administration and bachelor of science in finance degrees on May 11. "It was a great way to represent the University. It's also a way for me to build some contacts as well as build knowledge."
While most stock and commodity markets now trade electronically, the venerable "open outcry" system is still used to trade complex options on futures markets. Open outcry is the traditional method of trading stocks by shouting and using hand signals on an open trading floor.
"Doing open outcry gives you an idea of how the futures market trades," Koly said. "I've developed an interest since the commodities boom started to happen. It gives you a great idea of how the economic indicators work - why oil trades the way it does, or natural gas or gold."
During the competition, Koly and the other competitors gathered on the NYMEX floor after-hours and executed mock orders from fictional clients to buy and sell commodities. They were judged on technique and ability to carry out clients' wishes.
"You're yelling at the top of your lungs the entire time. It's a huge adrenaline rush," Koly said.
NYMEX judges said Koly displayed a good presence on the trading floor, participated in many trades and showed an ability to make trades while listening to the quotes being shouted by the other traders at the same time.
The annual NYMEX competition exposes students nationwide to the futures trading industry and teaches them about the contracts that NYMEX lists for trading. NYMEX members, brokerage operations, investment banks, oil and power companies and others donate prizes and offer internships and career advice to participants.
Koly, who started trading stocks while in high school, said he plans to become a portfolio manager and perhaps one day run a hedge fund. He currently works part-time at Smith Barney in Stamford, where he creates, tests and monitors investment portfolios under the supervision of financial advisors. "I enjoy the stock market," Koly said. "I enjoy trying to find opportunities that clients can make money on."