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The criminal responsibilities of … economists?

Using the events of L’Aquila and the subsequent convictions of Italian seismologists as a starting point, Dr Ioannis Oikonomou goes on to explore the extent to which economists could and should be held accountable for economic and financial turmoils.

In case you have missed it, a few months ago it was widely reported in the media that half a dozen Italian seismologists were convicted for manslaughter after being accused of not being able to predict (and giving false assurances prior to) the earthquake that struck L’Aquila and led to the death of 300 people. Reactions varied greatly: from the Royal Society and US National Academy issuing brief statements and simply condemning the decision of the Italian court, to individuals claiming we are moving back to “the medieval ages” and “the Spanish Inquisition model” to harshly worded articles claiming that scientists need to be held accountable : “those who claim the title “scientist”, be it natural or social, expect to combine the immunity of diplomats and the infallibility of popes.” 

By now you are probably wondering what does any of this have to do with a finance-related blog and when will the economists mentioned in the title show up. Besides, unlike seismology or meteorology, finance and economics are hardly the scientific fields that can be connected to catastrophic events that may lead to the loss of human lives.

Or are they?

You can continue reading the article in full on the ICMA Centre’s blog.

Finance Conference at the ICMA Centre – Henley Business School attracts hundreds of researchers from around the world

Financial researchers from across the globe are hoping to have their work showcased at the  European Financial Management Association (EFMA) annual meeting on 26-29 June 2013.

Hosted by the ICMA Centre at Henley Business School, the event is one of the largest and most prominent academic conferences on finance in Europe. The conference will see leaders from the financial world come together to share knowledge and discuss decision making in all areas of finance, including bankruptcy and financial distress, corporate governance, corporate takeovers, management compensation, asset pricing, portfolio management and asset allocation, risk management and financial engineering, bank regulation, monetary and economic policy, currency markets and exchange rates, international market integration, law ethics and finance, real estate and venture capital.

Henley Business School has received an overwhelming response of 598 papers (deadline now passed) sent by academics and practitioners from 44 countries across 5 continents. The papers will be reviewed in the next few weeks by a panel of 190 world renowned finance experts from top academic institutions including Harvard Business School, MIT, Stanford University, Yale School of Management, London Business School, INSEAD, Hong Kong University of Science and Technology, HEC Paris, and the University of Oxford.

About 300 papers are expected to be included in the programme over the four days of the conference. In addition several plenary sessions will be dedicated to timely and important finance issues.

Professor John Campbell, Chair of the Economics Department at Harvard University, is the keynote speaker for the 2013 meeting and will talk on the timely topic of ‘Understanding Volatility Risk’. Plenary session organisers and speakers include Dr Co-Pierre Georg, Deutsche Bundesbank, on ‘Transparency and Systemic Risk’, and Alex Edmans, Professor of Finance at The Wharton School, University of Pennsylvania, on ‘Executive Compensation and Corporate Governance’.

Dr Simone Varotto, Senior Lecturer in Finance at the ICMA Centre and Chair of the 2013 EFMA conference, said: “The event promises to be absolutely fascinating. We have been overwhelmed at the number of submissions we have received and the line-up of speakers is extremely exciting. Listening to Professor Campbell alone discuss finance is a privilege, never mind the hundreds of other great financial minds that will be gathered at Reading.”

Professor John Doukas, Executive Director of the EFMA said: “I am delighted that the 2013 EFMA conference will be held at such a prestigious institution as the University of Reading. The ICMA Centre and Henley Business School, who are organising the event, are well established and highly regarded in academic finance circles and the finance industry. Their expertise, excellent facilities and proximity to London make them an ideal host for the EFMA annual meeting.”

For more information about attending the conference, the speakers or to enquire about the numerous sponsorship opportunities available in connection with the event, please contact the conference chair at efma2013@icmacentre.ac.uk

 

Finance and the Middle Ages – Two new publications

We are off to a great start to 2013 with two new publications from ICMA Centre Academic staff. The two articles are available now for download and in paper copy.

The first article, Rich Pickings from Medieval Pilgrims, is available for download at the HistoryToday magazine’s website, and was written by ICMA Centre Head of School, Professor Adrian Bell, and Professor Richard Dale. The article explores some striking parallels between modern marketing tactics and the management of shrines in the Middle Ages, discusses how Pilgrims were a lucrative source of income for the Church, and looks at the true cost of miracles.

The second article, Medieval Money Tricks, sees a collaboration between the ICMA Centre’s Professor Adrian Bell, Professor Chris Brooks, and Dr Tony Moore and is available in January’s edition of BBC History Magazine.

The authors examine the evidence of financial irregularity in the Middle Ages and the methods used by Medieval merchants to circumvent Church laws against usury. Such methods included; lenders receiving valuable gifts “unrelated” to the loan, disguising interest as late repayment penalties on a loan that was officially interest-free, or disguising interest in different currency exchange rates for the loan and the repayment. These techniques are argued to have given way to a nascent capitalism, at the expense of a more ethical financial system.

Both publications offer a fascinating insight into the financial systems of the middle ages, and draw interesting comparisons to today’s financial world.

Professor Adrian Bell will be delivering a public lecture on Modern finance in the Middle Ages: What history can tell us about current financial crises, on the 13th of FebruaryHe will explore how medieval financial innovations have many parallels with recent events, and look at what lessons we can learn from the past. The lecture is part of the University of Reading Public Series 2012-13 and is free to attend. More information can be found at this link

DIIS Conference: Central Banking in the Context of the European Crisis

Senior Visiting Fellow at the ICMA Centre, Richard Comotto, will be speaking at the upcoming conference organised by the Danish Institute for International Studies, titled Central Banking at a Crossroads: Europe and BeyondThe Conference will focus on the future of Central Banking in the post-crisis period and look at how to restore stability to financial systems.

Richard Comotto will be a panellist in a workshop session titled: Central Banks and collateral-based Financial Innovation, on Wednesday 30th January in Copenhagen.

Mr Richard Comotto is one of the longest-serving members of the ICMA Centre adjunct faculty, who delivers the popular MSc module on short-term financial markets (FX, money markets and securities financing). His special interests are repo and other forms of securities financing, and electronic trading in OTC markets.

You can find more information about the conference and the workshops at the DIIS website.


2012: the year in News

2012 has been an exciting year for the ICMA Centre, filled with success and records.

We had the pleasure to announce a new Head of School, Professor Adrian Bell, in August and three new members of faculty joining us – Dr Nadia Kappou, Dr Ogonna Nneji and Miriam Marra. We would also like to mention again, Dr Ioannis Oikonomou, for his excellent achievements, which are bringing wider recognition across Europe to the research he is undertaking. 2012 also saw ICMA Centre students; Amy Ho, Juvereya Shoab, Yihan Zhou and Aaron Lam, receiving the prestigious Chancellor’s award, appointed to the University’s most talented students who achieved top marks in their School or subject area during the last academic year.

2012 saw us mark our 19th postgraduate intake as our biggest so far. The new students have now approached the end of their first term and we look forward to welcoming them back after the season’s holidays when they will start the spring term with Part 1 exams.

We also said goodbye to a few of our students graduating in December, and everyone at the ICMA Centre would like to congratulate you all and we hope you keep in touch via our LinkedIn, Twitter and Facebook accounts.

We would like to congratulate in particular Christos Mavrovitis, Ogonna Nneji, Vladimir Zdorovenin and Dimotris Korovilas for the hard work they put into their doctoral studies. Families, academic and administrative staff took time to come together and celebrate their success at a small reception organized at the ICMA Centre during the December Graduation Day.

To everyone at or involved with the ICMA Centre we would like to wish you all the very best for the New Year! Don’t forget to follow us on our Twitter account for regular updates and we look forward to an even more successful 2013!

 

ICMA Centre Profiles – Juvereya Shoab

Today we meet Juvereya Shoab, one of the four students being awarded the prestigious student award scheme at the University of Reading, the Chancellor’s Award.

What inspires you about your chosen subject of study?

The field of finance has always fascinated me given its rapid development and tumultuous history. I have been intrigued by the resilience of the financial world to begin to return to normalcy so fast. This drives me to learn in an in-depth way, how the financial industry works, how it emerges so victoriously at times and yet falls so disastrously at other times. Added to that, pursuing a subject of this genre in an international setting is an additional bonus for me.

The ICMA Centre winners of the Chancellor’s Award: Juvereya Shoab, Yihan Zhou, Yu Lam and Amy Ho, pictured with Hilary Feltham.

What attracted you to the University of Reading? 

I first became aware of the ICMA Centre as it was recommended to me by a previous Alumnus. What attracted me most to the ICMA Centre was that it offered you a hands-on experience of what it is like to work in the financial sector of the economy. The modern facilities and the international environment, also greatly appealed to me.

What do you plan to do after you complete this course? 

I would like to pursue my studies further in the subject of finance. I see myself working as a professional in either an investment bank or a financial firm. I have kept my options open ranging from an analyst working in the investment and treasury department of a bank to a consultant/adviser in a big accounting/consulting firm.

What’s the best thing about life at Reading?

Reading is a nice town filled with vivacity, energy and people. It’s laid back approach and proximity to the most happening place, London, has always attracted me. The atmosphere and the people here are also really friendly which has made my stay all the more enjoyable. The International environment at the University of Reading broadens your horizons to different cultures and enhances your learning experience.

Have you got any advice for future students?

You will meet many bright people and it can be very competitive, so you need to be confident to shine on your own. Get involved in students activities like the trading and investment society.

I sometimes play badminton but my real passion is football- now that Reading are in the Premier League I might get to see my favorite team- Manchester United!

ICMA Centre Profiles – Yihan Zhou

The ICMA Centre winners of the Chancellor’s Award: Juvereya Shoab, Yihan Zhou, Yu Lam and Amy Ho, pictured with Hilary Feltham.

One of our recent recipients of the Chancellor’s Award takes some time out from her studies to answer some questions for us.

What inspires you about your chosen subject of study?

It has long been my dream to work in the finance industry, which inspired me to choose Finance and Investment Banking at the ICMA Centre. The subject provides me with an excellent opportunity to explore various aspects of financial theories and extend my commercial and economic awareness and understanding of financial markets. 

Why did you choose to come to Reading to study? What attracted you to the University of Reading?

The primary reason I came to Reading is that the course covers all the areas that particularly interested me. The modules I have taken so far are not only about theories but more importantly they are tightly connected with real-world practices. Besides the high reputation and strong academic atmosphere, Reading also offers a great campus and an easy connection to London. I’m really enjoying life in Reading so far.

What was the highlight of 2011/12?

Receiving the Chancellor’s Award was an absolute highlight as it was recognition that all my hard work had been worthwhile. Besides that, the summer internship provided me with a fantastic opportunity to work with experienced financial analysts and see how financial instruments operate in practice.

What do you see yourself doing in five years’ time? What do you plan to do after you complete this course?

I hope to be qualified as a Chartered Financial Analyst and be working in an investment bank. It is a long way away but I have the determination to work towards it.

What’s the best thing about life at Reading?

It’s a great place to study as well as live. The campus is lovely with welcoming and approachable staff. The town has a large number of facilities and is located very close to London.

Have you got any advice for future students?

Work hard and then play hard!

  • Favourite movie:  The Guillotines
  • Favourite Sport: Pilates
  • Favourite Food: everything cooked by my mother

 

PhD Student Satchit Sagade published in Bank of England Working Paper

ICMA Centre PhD student Satchit Sagade recently published a working paper for the Bank of England together with Research Economist for the Bank of England, Evangelos Benos. The paper entitled “High-frequency trading behaviour and its impact on market quality: evidence from the UK equity market”, studies the behaviour of high-frequency traders in the UK equity market and analyses its impact on market quality.

The paper notes how high-frequency trading activity has steadily increased in recent years and has garnered the attention of regulators following events such as the Flash Crash in May 2010 and the Knight’s Capital trading glitch in August 2012.  To analyse the intraday behaviour of high-frequency traders and the impact on aspects of market quality, such as liquidity, price discovery and excess volatility, Satchit and Evangelos use a unique transactions data set for four UK stocks, over the period of a randomly selected week.

Satchit, who is currently working on his PhD thesis, stated “I started work on this paper during the summer of 2011 as part of an internship at the Payments & Infrastructure Division within the Financial Stability area of the Bank of England. It was a great experience working at the Bank of England and I would like to thank them for providing me with an opportunity to work on the highly topical issue of high-frequency trading.”

The paper has gathered recognition from the Financial Times’ Alphaville blog and is available in full on the Bank of England’s website, working paper no 469.

Satchit is currently pursuing his PhD under the supervision of Dr Alfonso Dufour in the area of algorithmic trading. He previously obtained an Msc in International Securities, Investment and Banking with Distinction at the ICMA Centre in 2008. For more information on Satchit Sagade please visit his profile.

 

ICMA Centre students Christmas party

It has only been a couple of months since we welcomed new and returning students to the ICMA Centre, but with the holiday season fast approaching, the end of the first term is almost upon us. To celebrate, the ICMA Centre students and staff attended the annual Christmas party.

The party started just after six, as students came out of their lectures and seminars to join in the festive atmosphere, with Christmas decorations and carols playing around the Centre. The students and staff tucked in to the buffet, including Christmas treats such as traditional mince pies, and indulged in a variety of festive drinks.

All of the students had raffle tickets and there were plenty of great gifts to be won. As the festivities continued even Santa Claus made an appearance and the students enjoyed having their photo taken with him.

The night was a great success and both students and staff enjoyed the opportunity to relax, look back on an eventful first term, and celebrate the upcoming holidays.

ICMA Centre students day trip to Bath

On a beautifully crisp and sunny Sunday morning, 68 ICMA Centre students and staff boarded a coach to Bath for a day trip to one of England’s oldest and richest historical cities. Organised by the Student Ambassador, Dan Alder, the day was a great opportunity to meet with others from across the ICMA Centre’s programmes, with individuals from around the world, taking up the chance to explore the West of England.

Both undergraduates and postgraduates, browsed through the atmospheric, traditional Christmas market with over 140 stalls, to pick up some gifts or just sample some mulled wine.

Several students enjoyed a visit to the Ancient Roman Baths where the Romans first built on Bath’s geothermal spa over 2000 years ago. While others preferred to relax, bathing in the open-air roof top spa, with a stunning view of the town and Abbey below.

 

The day proved a great success with the Student Ambassadors already looking forward to planning their next event!