Collegiate energy trading is just like the real thing

Some of the world’s largest energy trading firms will be at Tulane University on Oct. 23 to see some of the nation’s top collegiate energy traders put their risk strategies to the test in a realistic trading contest. In just two years, the Tulane Energy Trading Competition has not only established itself as proving ground for students to test their skills using the most cutting-edge, real-time trading simulation software, but it has also developed into a prime recruiting opportunity for leading energy firms. The success of last year’s event led the Chicago Mercantile Exchange – the largest and most diverse exchange in the world – to partner with Tulane’s A.B. Freeman School of Business to underwrite the competition. This year’s 28 finalists earned their place by successfully trading for two weeks, amongst a group of 174 students from 33 top-ranked universities, with simulated accounts against the live crude oil and natural gas futures markets. All of the students used Trading Technologies and Thomson Reuters professional software and were ranked based on their risk-adjusted returns. “This is a demanding event on the students that have participated thus far. We are challenging them to use the same markets, trading software and risk management criteria that the top energy firms employ,” says Trading Center Director Joseph LeBlanc. “The finalists will now be challenged to not only trade against one of the most sophisticated energy trading simulations in the marketplace, but will be required to present their trading strategies and explain their ultimate results before our outstanding panel of top energy trading executives who will determine the top five university energy traders. This is difficult. This is what it takes to be the best.” Students will compete for an opportunity to be selected for internships and jobs at participating firms in addition to approximately $375,000 in cash and cash equivalent prizes from sponsors.