Why institutional investors are entering the digital asset space – Edward Woodford

MIT Sloan Master of Finance Alumnus Edward Woodford

Digital assets have garnered increasing interest from institutional investors, despite questions remaining around the regulation, security, and reliability of trading venues. Today, the largest trading venues – typically referred to as “crypto exchanges” – serve individual investors and traders, are limited to spot trading, and are often unregulated or based in foreign jurisdictions. What’s more, they often lack the technological infrastructure and depth of liquidity to execute larger orders that institutions require.

As a result, many of these institutional investors – typically those managing large amounts of money – bypass exchanges and turn to the opaque world of over-the-counter (OTC) trading, buying and selling large amounts of cryptocurrency directly with a specific counterparty. Deals are done in the dark, primarily through messaging platforms like Telegram and Skype. We estimate that the OTC market is currently around three times greater than the on-exchange volume.

However, the OTC trading has some considerable downsides compared to on-exchange trading. Participants can see a publicly disclosed order book on exchange, which does not exist OTC. With an order book, there is more transparent pricing, which allows for the best executable price within the market. In addition, contrary to an exchange where the identity of your counterparties is hidden, with OTC, an investor’s intention – to buy or sell – is revealed and thus can cause slippage in price or leakage in terms of your trading intentions.

The fact is that the lack of an acceptable institution-ready exchange is the one of the single largest barriers to crypto asset class growth, as every meaningful financial market is built on a foundation of institutional involvement.

What does the digital asset space look like today?

Today, digital asset trading is dominated by institutions, principally OTC. The type of institutions involved is changing. The early players were proprietary trading firms and family offices, who have the most latitude in their investment mandates. Digital asset hedge funds were also established with specific mandates to trade digital assets. Now, more established funds are entering the space, along with asset managers who’ve had to gain additional comfort.

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Tips for female MBA graduates seeking mentors – Maura Herson

Maura Herson, Assistant Dean of the MBA Program at MIT Sloan

From Financial Times

The benefits of providing women with mentors are clear. A 2016 study by Frank Dobbin of Harvard University and Alexandra Kalev of Tel Aviv University found that when employers introduced such programmes, “managerial echelons [were] significantly more diverse”. And companies with diverse perspectives on their leadership teams have better results.

According to Iris Bohnet in her 2016 book What Works: Gender Equality by Design, mentorship for women leads to increases in salaries as well as promotions and higher career satisfaction. She also notes that such programmes are associated with an increase in diversity in management.

Through its clubs, its leadership centre and its alumni, MIT’s Sloan School of Management offers its female MBA students many opportunities to both have and be mentors. After graduation, they can use these relationships as models to seek out and structure additional mentor/mentee relationships.

What should women who are finishing MBAs and preparing to start work consider when seeking a mentor?

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How to motivate people to do good for others – Erez Yoeli

Erez Yoeli, MIT Sloan Research Scientist

From TedxCambridge 

How can we get people to do more good: to go to the polls, give to charity, conserve resources or just generally act better towards others? MIT research scientist Erez Yoeli shares a simple checklist for harnessing the power of reputations — or our collective desire to be seen as generous and kind instead of selfish — to motivate people to act in the interest of others. Learn more about how small changes to your approach to getting people to do good could yield surprising results.

Watch the full talk at TedTalk.

Erez Yoeli is a research scientist at MIT Sloan’s School of Management, where he directs the Applied Cooperation Team.

How many undocumented immigrants there really are, and why the number matters – Mohammad Fazel-Zarandi

MIT Sloan Senior Lecturer Mohammad M. Fazel-Zarandi

From Daily News

How many undocumented (illegal) immigrants are there in the United States? Previous estimates put the number at around 11-12 million.

These estimates are too low. That’s because they are based on surveys that ask individuals where they were born. This approach doesn’t work well for undocumented immigrants. They are hard to track down. They don’t want to be found. And if they are found and asked this question — where are you from? — they have every reason to refuse to answer or answer untruthfully.

In a new study, we estimate the number of undocumented immigrants using a different approach that doesn’t rely on surveys. And we get a very different answer. We estimate that there are at least 16.7 million and most likely more than 20 million.

Our approach is to estimate the inflows of undocumented immigrants (how many are entering the United States each year) and the outflows (how many are leaving). Inflows include border crossings and visa overstays. Outflows include deportations, conversions to legal status, deaths and voluntary emigration.

Adding up the inflows each year and subtracting the outflows gives an estimate of how many undocumented immigrants remain in the country at the end of the year compared to how many there were at the beginning of the year. We use operational data, especially from the Department of Homeland Security, as well as data and analysis of the movements of undocumented immigrants across borders. We estimate inflows and outflows every year from 1990 to 2016.

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Voices in AI – Episode 72: A Conversation with Irving Wladawsky-Berger

MIT Sloan Visiting Lecturer Irving Wladawsky-Berger

MIT Sloan Visiting Lecturer Irving Wladawsky-Berger

From GigaOm

Episode 72 of Voices in AI features host Byron Reese and Irving Wladawsky-Berger discuss the complexity of the human brain, the possibility of AGI and its origins, the implications of AI in weapons, and where else AI has and could take us. Irving has a PhD in Physics from the University of Chicago, is a research affiliate with the MIT Sloan School of Management, he is a guest columnist for the Wall Street Journal and CIO Journal, he is an agent professor of the Imperial College of London, and he is a fellow for the Center for Global Enterprise.

Here is the podcast transcript:

Byron Reese: This is Voices in AI, brought to you by GigaOm, and I’m Byron Reese. Today our guest is Irving Wladawsky-Berger. He is a bunch of things. He is a research affiliate with the MIT Sloan School of Management. He is a guest columnist for the Wall Street Journaland CIO Journal. He is an adjunct professor of the Imperial College of London. He is a fellow for the Center for Global Enterprise, and I think a whole lot more things. Welcome to the show, Irving.

Irving Wladawsky-Berger: Byron it’s a pleasure to be here with you.

So, that’s a lot of things you do. What do you spend most of your time doing?

Well, I spend most of my time these days either in MIT-oriented activities or writing my weekly columns, [which] take quite a bit of time. So, those two are a combination, and then, of course, doing activities like this – talking to you about AI and related topics.

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