Yale ICF Board Member Spotlight: Nitin Gambhir '93
Nitin Gambhir '93 is an ICF Advisory Board Member and Founder and CEO of Tethys Technology, Tethys Capital and Oceanus Securities.
In this blog series, the Yale ICF will highlight ICF Advisory Board Members who are practitioners from various finance fields and alumni of the Yale School of Management and/or Yale University. Our board members enjoy giving back to the Yale community by participating in panels, guest lecturing, and taking part in Q&A sessions with students. Their generous financial support allows the Yale ICF to host events, sponsor academic initiatives, provide research support to faculty, and much more. The Yale ICF is grateful for their continued support!
1. What is your current role and industry?
I am the founder and CEO of Tethys Technology, Tethys Capital and Oceanus Securities.
Tethys Technology is an industry leader in global algorithmic trading and market-microstructure research. Since 2004, Tethys has focused on developing analytics and solutions that allow our clients to achieve optimal trade execution. Our clients include asset managers, hedge funds, CTAs and broker-dealers who utilize our products to improve their trade execution, conduct real-time benchmarking and historical simulations. Tethys delivers a unique combination of expertise in quantitative finance, market microstructure and computing.
Tethys Capital is a platform to assist quantitative asset managers in the identification of alpha sources, optimal capital allocation and access highly efficient asset management workflows. Tethys Capital leverages the Tethys Technology global trading solutions and network.
Oceanus Securities is a registered broker-dealer and is focused on providing algorithmic and DMA agency execution in global equities and listed options.
2. How did you get into the field?
I graduated with a bachelor's degree in engineering from the Indian Institute of Technology. After receiving admission offers from both the Yale School of Management and Yale School of Engineering for post-undergraduate studies, I seized the opportunity to pursue my interests in both business and engineering by enrolling in a joint MBA/MS program and completing coursework at both the SOM and the Engineering School. I had planned to join my family's manufacturing firm in India after obtaining my Masters, but my time at Yale sparked a passion for finance, leading me to redirect my career trajectory and remain in the US.
After graduation, I joined JP Morgan in corporate finance, where I developed an interest in quantitative finance. I transitioned to the fixed-income derivatives team, specializing in interest rate SWAPs, before seizing an opportunity to join the Relative Value Proprietary Trading desk. This pivotal role solidified my career trajectory toward quantitative trading, which has remained my primary focus ever since.
I thrive on the challenges of navigating global exchanges and diverse asset classes, including equities, options, futures, and f/x. Overseeing the development of trading strategies across these domains provides me with continual intellectual stimulation, driving my professional journey forward.
In the dynamic finance industry, staying updated is imperative. Continuous learning, adaptation, and leveraging technological advancements are essential for success. Building a successful career in finance requires dedication and perseverance.
3. What are the biggest challenges and opportunities that professionals in your industry face?
In the dynamic world of finance, professionals face constant change and must remain adaptable to thrive. With factors such as shifting market trends, rapid technological advancements, and evolving regulations reshaping the industry landscape, adaptability is crucial for success. By fostering a growth mindset and staying abreast of industry and technology developments, finance professionals can position themselves to seize emerging opportunities and drive success.
4. Where do you see the industry going in the future?
The key trends and developments that will shape the future of global trading and financial markets include:
Technology continues to transform the financial industry. Artificial intelligence (AI), machine learning, big data analytics, and blockchain technology are already making a significant impact. These technologies enhance trading efficiency, automate processes, improve risk management, and enable the development of new financial products and services. At Tethys, we try to stay ahead of the curve and diversify our business across product categories, customers and geographies.
Automation in trading has continued on an upward trend for the last two decades leading to faster execution and increased market liquidity. This also resulted in a proliferation of trade execution venues and market microstructure complexity, which we successfully navigate for our clients.
Regulatory frameworks will continue to evolve, particularly in response to technological advancements and emerging risks. Regulatory focus may include areas such as cybersecurity, data privacy, cryptocurrencies, and sustainable investing. Financial markets are highly interconnected globally. Continued globalization and the growth of emerging economies may lead to increased cross-border investments, international collaborations, and the integration of global trading platforms.
It is important to be aware of evolving investor preferences, as they are changing. Millennials and Gen Z investors, who prioritize technology, sustainability, and transparency, will shape the future landscape. This will drive innovation in financial products, increase demand for socially responsible investments, and include the integration of digital solutions to cater to these demographics.
Economic fluctuations, geopolitical events, and emerging risks (including climate change and cybersecurity threats) also impact market stability. Effective risk management practices and the development of sophisticated risk models will remain crucial for market participants.
It is important to note that predicting the future of financial markets is challenging, as it depends on numerous interconnected factors. By closely monitoring industry trends, adapting to technological advancements, and staying informed about regulatory changes, financial professionals can position themselves to navigate and capitalize on the evolving landscape.
5. What advice do you have for someone new to the industry?
Finance is a vast and ever-evolving field. Continuously invest in your learning by staying updated on industry trends, regulations, and financial instruments. Read books, attend seminars, take online courses, and consider pursuing relevant certifications like CFA (Chartered Financial Analyst) or getting an MBA or MS at Yale, as I did.
Develop strong analytical skills: Financial analysis requires a strong foundation in quantitative methods. Enhance your skills in areas such as financial modeling, data analysis, statistical analysis, and forecasting. Proficiency in coding and databases is important. SqL, C++ and Python can be very beneficial.
Risk is inherent in finance, and understanding how to assess and manage it is critical. Familiarize yourself with risk management concepts, including diversification, hedging, and risk-reward analysis. Developing strong risk assessment skills will help you make informed decisions and mitigate potential losses if you plan on trading, as I did at the beginning of my career.
While technical expertise is essential, don't overlook the importance of soft skills. Develop your interpersonal skills, leadership abilities, teamwork, and problem-solving capabilities. The ability to collaborate effectively and communicate with diverse stakeholders will set you apart. And last but not least, network. Get to know people; the connections you make will be another key to your success.