The inaugural Future Finance Fest (3F) in Vilnius was great, I'm still processing the wealth of insights, connections, and innovative ideas that emerged from this remarkable three-day gathering. As someone deeply invested in the future of finance and technology, I can confidently say that 3F has set a new standard for how academic rigor and industry innovation can converge. Thank you David Stolin and team!
Vilnius: The Perfect Backdrop for Financial Innovation
Vilnius proved to be an inspired choice for this conference. The Lithuanian capital, with its blend of medieval charm and modern dynamism, perfectly embodies the spirit of transformation that defines today's financial landscape. Walking through the cobblestone streets between sessions, one couldn't help but notice the energy of this city – a thriving tech hub where tradition meets innovation at every corner. What struck me most was the palpable hunger for success among the young professionals and academics who filled the conference halls.
HoFT's Strategic Presence
Dr. Sebastian Schäfer's participation in the panel discussions brought valuable perspectives on the intersection of technology and finance, reinforcing HoFT's position as an ecosystem provider.
Selected Sessions: Where Theory Meets Practice
In a great keynote Antonio Gargano showed how collaboration between academia and companies can succeed.
Interesting findings on the option market
It was quite impressive to meet high-calibre experts on options markets like Dan Galai and Zvi Wiener. Moreover I was not aware how wild the option market in India has become.
ETF Market Microstructure Deep Dive
Andrei Kirilenko's presentation on ETF pricing mechanisms and authorized participants provided fascinating insights into market microstructure. His analysis of how authorized participants manage inventory between primary and secondary markets was supported by impressive real-world data. The presentation elegantly demonstrated how "mispricing" in ETFs isn't really mispricing at all, but rather compensation for risk and inventory management.
Corporate Bonds and the ETF Effect
Another compelling session by Egle Karmaziene explored how ETF ownership affects corporate bond volatility. Contrary to equity markets where ETF ownership increases volatility, the research showed that in bond markets, ETF ownership actually reduces volatility. This counterintuitive finding, particularly pronounced in illiquid bonds, challenges our understanding of how ETFs interact with their underlying assets across different asset classes.
The ACTUS Revolution
Allan Mendelowitz and Willi Brammertz presented on the ACTUS financial standard offered a vision for transforming financial infrastructure. Their algorithmic approach to standardizing financial contracts could revolutionize everything from risk management to regulatory compliance.
