Manu Asthana, President, Luminant Energy addresses FMS South Campus on Energy Derivatives

Mr. Kishore Asthana, an alumnus of IIM Ahmedabad, has an illustrious background, having worked at the Tata Administrative Services. Apart from that, Mr. Asthana has held senior roles in the corporate world. At present, he leads Indus Options Consultancy which is engaged in export of Indian technology.

Mr. Manu Asthana, an alumnus of the Wharton Business School, presently working as the president of Luminant Energy has had major stints at Union Bank of Switzerland and asset management companies as derivatives trader. Mr. Asthana provided students with vital information about how the energy derivatives market works and how the world economy was shaping up with the rise of the energy derivatives market. He talked at length about how the energy derivatives market has gained wide popularity in Texas in the US. Major emphasis was laid on the deregulated Texan energy market. Mr. Asthana also touched upon the details of how major organizations are making quick inroads into the emerging field of energy derivatives trading.
He also talked briefly about how the emissions trading had gained wide popularity in the European Union and how organizations are gearing up to meet the emissions requirement as per the emission laws. The seminar turned out to be an interactive session wherein the student asked numerous questions on emissions trading, energy derivatives, energy crisis and derivatives market. Mr. Asthana provided details insights into each of the questions using illustrative examples.

He talked at length about how his organization trades in energy derivatives using swaps, forwards, futures and options. He also elaborated on how commodities trading using ancillary service and capacity reserves were carried out his organization. Other topics of discussion included energy production using diesel, lignite coal and natural gas.

The focus then shifted back to how the players in the energy derivatives hedged their positions in order to make profits. Mr. Asthana expatiated on how the hedgers, arbitrageurs, and speculators worked in the derivatives market. The whole gamut of permutations and combinations with respect to the oil prices were also looked at. The discussion invited a number of questions from the students focussing on how the appreciation in oil prices was affecting the world economy. Mr. Asthana explained the role of speculators in the appreciation of oil prices and how such a spurt in crude oil prices would lead to a prudent usage of the crude oil world over.

After the insightful discussion over energy derivatives, Mr. Asthana enlightened the students about the professional life of a trader. He explained how trading is carried out at the stock exchange and investment banks. He also expatiated upon what all pre-requites are required talking in context of the personality of an investment banker. The sacrosanct ones being (a) The ability to think under pressure (b) The ability to face uncertainties in the ever-changing equities and derivatives market.
Mr. Asthana then summarised how the energy financial instruments was going to change the face of the burgeoning derivatives market, and how the nations need to come up with realistic targets to meet their energy requirements.

The dais was then taken over by Mr. Kishore Asthana who then answered students queries regarding career opportunities in the Middle East based on his enriching experience span of over 20 years. He also urged students to join Mensa, an organization which has been the torchbearer in promoting IQ related quizzes and problems.

Says FMS, The seminar was an enlightening experience for the students of FMS who benefited from the two scholars who have been pioneers in their respective fields.