Alumni Masterclass 2017 - Amazon S3 · Henley Business School Henley empowers individuals to become...
Transcript of Alumni Masterclass 2017 - Amazon S3 · Henley Business School Henley empowers individuals to become...
Henley Business School
Henley empowers individuals to become great professionals and
outstanding business leaders who think with clarity and act with
confidence and conviction.
Our strength lies in our approach. We enable people to better
understand themselves and their responsibilities while at the same
time blending the practice and theories of successful business.
An engaging, focused and distinctive business school
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Being a truly international business
school
The excellence of our learning
experience
World-class research and thinking
Our sense of community and
responsibility
The strength of our networks
The breadth and depth of our
relationships with industry
Henley Brand Positioning
Engaging Business
Research CentresSubscription Based Ctrs
Professional conferences
Collaborative events
Alumni
EngagementEvents (including
Webinars)
Master classes
Sponsorship/Funding
Teaching &
Learning Custom programmes
Professional Accreditation
Guest Speakers/site visits
EventsEngaging Business Series:
Keynotes, Breakfast
Seminars, Spotlights
Journalist Day
Executive
EducationHenley Partnership
Open Programmes
Customer Programmes
CareersCareers Fairs
Involvement in workshops
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Rankings
Accreditation Rankings
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• Triple Accredited
o Under 100 of the world’s
16,500 Bus Schools
Good but not yet great
• Full-Time MBA: #27
• Exec MBA: #47
• Exec Ed: #20
• Master in Finance: #40
• Complete UG
o Acc & Fin: 14
o Bus & Man: #28
o Land Man: #1
Allied Health Professions, Dentistry, Nursing &
Pharmac
Psychology, Psychiatry & Neuroscience
Biological Sciences
Agriculture, Veterinary & Food Science
Earth Systems & Environmental Sciences
Chemistry
Mathematical Sciences
Electrical and Electronic Engineering, Metallurgy
and Material
Architecture, Built Environment & PlanningGeography, Environmental Studies & Archaeology:
Archaeolog
Geography, Environmental Studies & Archaeology:
Geograph
Business & Management Studies
Law
Politics and International Studie
Education
Modern LanguagesEnglish Language and
Literature
History
Classics
Philosophy
Art and Design: History, Practice and Theory : Ar
Art and Design: History, Practice and Theory :
Typograph
Music, Drama, Dance and Performing Arts
Overall
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REF
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2004 REF
Improved
Declined
Research: REF and Industry
REF – Bus & Mgmt (135 entries)
#16 for GPA (up 30)
#10 for Impact
Industry impact
• ESRC on Finance History -
£800,000
• Newton Fund for Energy -
£750,000
• Cabinet Office: reputation
• Deloitte: Tax and Ethics
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Excellent research and thinking
• Henley’s research has always had a strong focus
on policy and practice, as well as pure theory
• Our research centres profile our key themes
John Dunning Centre for International Business
Henley Centre for Customer Management
Informatics Research Centre Centre for Intelligent Places
John Madejski Centre for Reputation
Henley Centre for Entrepreneurship
Centre for International Business History
Henley Centre for Engaging Leadership
The ICMA Centre Centre for Euro-Asian Studies
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Teaching and Industry
• Innovation in teaching
o Started British management education
o First distance learning MBA in the world
• Professional contacts
o Individuals with industry experience
o Connections with over 25 professional bodies
o BSc Accounting with PwC; Huawei Academy
• Corporate Qualifications
o Financial Conduct Authority
• MSc Financial Regulation
o Deutsche Telekom, ING, Roche
• MSc Strategic Marketing
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Research programmes
Phd Programme
Selective
c 200 registered
Good completion rates
DBA Programme
Aimed at Practitioners
c 100 registered
AMBA accreditation
Strong alumni
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Henley South Africa
• “We build the people who build the businesses that build
Africa.”
• The only foreign business school in South Africa
• Over 1,000 students on site in January
• Mission to become
“Henley Africa”
• MBAid initiative
• 60% of Henley MBA
students registered in
ZA
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Henley International
• International Partner Network (IPN)
o Subsidiaries
• Finland, Germany, South Africa
o Partners
• Beijing Institute of Technology (BIT) – BSc Accounting
• Rotman (U of Toronto) – DBA
• Venice – BSc in Finance
• Ghana - MSc Informatics
• Denmark, Malta – MBA
• Closed/Terminated:
o Henley Hong Kong (after 35 years) and Trinidad
• University of Reading in Malaysia (Johor)
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• Ranked #1 for potential to network and breadth of alumni network
• Masterclasses, events, and special interest groups (LinkedIn: 7,500)
• Alumni associations in more than 15 countries
• Alumni provide mentoring, advice, support for recruitment and funding
• 60% of Alumni are in mid/senior positions
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The Henley Alumni Community
Administrative Staff College of India
• Based on Henley
• Founded 1953
• Hyderabad
• Still a key Civil Service
academy in India
• Describes itself as
o The only bar with a management college attached.
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Aligned identitiesShared ambitionsDifferent markets
Henley is an excellent business school anda significant asset of UoR
A trusted relationship
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• European Regulation
o Trading size and speed
• Technology
• Scandals and Reputation
o LIBOR
• People
o Knowledge and the Levy
• Environment
o BREXIT
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MiFID II
• Markets in Financial Instruments Directive 2
o In effect from 3 Jan 2018
• Fund managers must explicitly pay for research
separately from trading fees
o Arguably increases transparency by hurts smaller firms
• Much stricter “Best Execution” rules to reassure traders
that they have got a good price
o But volume of reporting is very large!
• Block Trading
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Block Trading
• How does a big institution trade a large block of shares
without obtaining a damaging price?
o Been a major regulatory question for decades
• London used to be the centre of institutional trading
with its “upstairs market” and trade reporting delays
• Arrival of electronic platforms made this untenable
o Either large trades are automatically cut up
o Or trade off-exchange in “dark pools”
• Dark Pools
o Dark Pools share was 2% in 2010 and 9% in 2016
o The LSE’s own dark pool is Turquoise-Plato executed £550m in
July 2016 and £1.75bn in Feb 2017
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Block Trades
• MiFID forces reporting even in dark-pools
o “Double cap” to prevent reliance on off-exchange (If more than
4% of trading in any stock on a dark-pool, or 8% across pools,
then trade off exchange is prohibited for 6 months
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FTSE 100
FTSE 250
OMX 530
ISEQ
MDAX
CAC 40
STOXX 50
% of trading above 8% on Dark-Pools
Block Trades
• Regulatory arbitrage already led to “innovation” EG
o “Periodic Auctions” in which orders are given at “indicative”
prices and are matched by volume and executed at “best” price
• Since the bid price IS public, this is not a dark pool (even
though executed price isn’t)
• Periodic may be “many times per second”
o “Indication of Interest” platform allows pre-trade matching but
execution is then public.
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Equity trade size shrinking
• In FTSE 100 stocks the average trade size
o in 2002 it was £60,000
o in 2012 it was £6,500
o In 2017 it is £4,750
• Consequence of High Frequency Trading (HFT) provision
of market liquidity versus traditional OTC dealer
provision
• AND difficulty of executing block trades
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High Frequency
• Traders realise that
o “cutting up” big trades gains value
o Very quick trading is itself profitable
o Trades now execute 1/100,000 seconds
• Trades executed direct to exchange
o Regulation cannot keep up
o “Flash Crash”
• Attempts to control it by trading limits
o Resisted by those seeking “fair” profits from exploiting
innovative technology
• 50% of US trading is High Speed
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Execution speed
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• How fast can I trade?
• Is it worth it?
o Cost of connection between Illinois-NewJersey is $2m/annum
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2012 2013 2014 2015 2016
Round-Trip Latency (milliseconds)
Actual Theoretical Minimum
Why is this necessary
• Is this:
o Good Business
o Pointless
o A rip-off
o Damaging to the market
o A cause for regulatory concern
• Is it insider trading
o Who owns the order flow?
• Last year’s news – “the market has peaked and focus is
now on strategy not speed”
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Is this new
• Rothschild made their money with pigeons at Waterloo
• 2017 it is all in Basildon and Slough
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Examples
• Trader fined £37,000 for using WhatsApp at work
o DB has banned apps from work phones
o GS has capped private phone bills after people switched to own
phone use!
• Blockchain (core of bitcoin) being tried to settle oil
trading to avoid costs and delay of the traditional
contracts/letters of credit/inspection regime
• Quantopian – crowdsourced algorithmic trading hedge
fund
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On the other hand
• The London Metals Exchange is the largest market in
metals
o Still open outcry
o “unusual” rules
o Bums on seats
• New premises
in 2016
• Plenty of phone/online trading but ring price is key
• Established above a hat shop in Lombard Court in 1877.31
Stephen Ross
• Died 2017
• “Arbitrage Pricing”
o Basis for much financial
innovation
o Equity / hedge funds
o Option pricing
• ”If I can copy it, I can value it”
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Corruption: Libor
• London Inter Bank Offer Rate
o Used as the “reference” interest rate for 100 years
o Set by “agreement”
• Was the market rigged?
• Settlements:
o ICAP $87m
o Barclays $450m
o RBS $615m
o Rabobank $1,000m
o UBS $1,500m
• So how much did they make from this?
o And for how long
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LIBOR
• Latest twist is allegation that Bank of England pressured
Barclays (and others) to rig LIBOR
• Fines to date £7.5bn
o Barclays fined £350m; Bob Diamond resigned; 4 traders
imprisoned
• ICE (which owns Liffe) also owns LIBOR
o Bought for £1 from BBA after scandal
o New measure based on actual trade information
• 4.5million data points per day
• Algorithm is based on trading which is based on algorithms!
• CEO “Need humans when the machine goes nuts”
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The Professionals
• Bob Diamond
• “One of the most thoughtful and
intelligent bankers”
• Resigned (again) after LIBOR scandal
• Rebuilding reputation:
“incredible entrepreneurial opportunity”
to invest in financial companies competing
with so-called systemically important banks
that are facing increasing scrutiny from regulators.”
• Now owns historic London stockbroker Panmure-Gordon
which is now very active on AIM.36
Buyers of Financial Products
• FT Survey of 18-35 year olds
• 17% did not know their tax band
• 25% unsure whether they were in a pension scheme
• 38% think Lifetime ISA better than Pension
o In spite of better tax regime and employer contributions
o “Mis-selling risks written all over this” Ros Altman
• 56% did not know what compound interest is
• “Those Hargreaves Landsdown people will tell me what
to invest in, won’t they?”
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Professional Competence
• Been questioned for decades (not just financial services)
o GS cut training to $100 employee/annum
• Apprenticeship Levy – Truly Disruptive
o Mandatory “Use or lose” training budget as from 1 April 2017
o Levy set at 0.5% of Payroll – approx. £2.4bn by 2018
o Affects over 2,000 private and public sector entities
• Programmes at all levels in-work to employees
o To industry approved “standards”
• Estimates are for 2,000 standards and 3m participants
o By Registered Providers
• Already approved:
o Chartered Manager (levels 5, 6 & 7)
o To be approved: Accounting (level 7), Financial Services (level 6) 39
Brexit
• Changes everything
o Or not
• Individual positions are non-negotiable
o Discussion is difficult
• “We have had enough of experts”
o How many people actually know what “WTO rules” are?
• LSE / Deutsche Börse merger failed
o Very close to Article 50
o “Difficult to do cross-border business when there are strong
nationalistic undertones”
o Carsten Kengeter (CEO of DB) is under investigation for insider
trading related to deal
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