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Date: Jan 10, 2008
Local High School Students Compete in Commodities Trading Competition at Hofstra
Hofstra/NYMEX contest teaches students about futures markets, contractsHofstra University, Hempstead, NY – Students from 15 Long Island high schools will compete tomorrow in the second round of mock "open outcry" commodities trading at Hofstra University’s Martin B. Greenberg Trading Room as part of the Hofstra/NYMEX Commodities Challenge for High Schools.
The contest will begin at 10:30 a.m. in the Trading Room in Starr Hall, south campus. The 29 students last week were given a simulated $100,000 account to use to trade the February crude oil futures contract. Working in teams of two, students competed to see which high school group could earn the highest profits. The first round involved the relatively new electronic trading. Tomorrow’s competition involves the more traditional “open outcry” trading, which requires market participants to shout out orders that are then reinforced with hand signals.
"This program extends the Frank G. Zarb School of Business’ ongoing efforts to provide Long Island high schools with business education beyond that offered at the high school level," said Dr. Ahmet Karagozoglu, associate professor of finance and academic director of the Trading Room. "NYMEX has traditionally offered the NYMEX Commodities Challenge at the college level and limited participation to the top business schools in the country. The new Hofstra-NYMEX Commodities Challenge gives Long Island high school students access to an educational opportunity that combines the knowledge and expertise of both academics and practitioners coupled with a simulated trading competition."
Nancy White, Ph.D., associate professor and chair of the Zarb School of Business Finance Department, introduced the students to the role of futures markets and futures contracts; Dr. Karagozoglu, explained the specific characteristics of the crude oil futures contract, a contract that is very widely traded; and Stan Yabroff from CQG, manufacturers of the trading software used in the competition and on the NYMEX floor, taught the group the ins and outs of electronic trading using the CQG system.
David Greenberg of Sterling Commodities Corporation, son of Martin B. Greenberg, tomorrow will teach students the mechanics of open outcry trading. NYMEX representatives Linda Rapacki and John Lemkan will assist in the training and will determine which of the students are the best open outcry traders.
Prizes will be awarded to the top three students in each part of the competition.
Martin B. Greenberg, '60, in whose honor the Trading room was dedicated last year, is founder and chairman of the board of Sterling Commodities Corporation. From 1987 to 1990 he served as a board member of the Commodities Exchange Inc., and later served as chairman of the board from 1990 to 1992. He is credited with turning around the fiscally distressed Commodities Exchange. Mr. Greenberg joined Hofstra's Board of Trustees last fall.
The Trading Room opened in C.V. Starr Hall (a technologically enhanced classroom building) in January 2005 as part of the Frank. G. Zarb School of Business. The room features 34 dual-panel Bloomberg terminals that provide access to Bloomberg Professional data and information services. The Trading Room gives Hofstra faculty and students the ability to access and analyze a vast array of financial and economic data, apply analytical methods, conduct interactive trading simulations, and develop contemporary financial models.
Hofstra University is a dynamic private institution where students can choose from about 145 undergraduate and 155 graduate programs in liberal arts and sciences, business, communication, education and allied human services, and honors studies, as well as a School of Law. With a student-faculty ratio of 14-to-1, our professors teach small classes averaging 22 students that emphasize interaction, critical thinking and analysis. Hofstra offers a faculty whose highest priority is teaching excellence, cutting edge technology, extensive library resources, internships and special educational programs that appeal to their interests and abilities. The Hofstra community is driven, dynamic and energetic, helping students find and focus their strengths to prepare them for a successful future.