US
If university studies strictly dictated what you did for the rest of your life, Arun Murthy would have been an engineer. Instead he changed track and is now the global head of commodities trading, Standard Chartered Bank. Prior to joining the firm in 2008, Murthy headed the Asia Pacific commodities business at Lehman Brothers and was at Goldman Sachs for 11 years.
Q: Was banking what you always envisioned yourself doing? What made you decide on this specific area of banking?
A: I was always interested in trade. Even as an undergraduate and masters student in Germany (studying electrical engineering at the Technical University Munich), I would import rugs from Bolivia to sell in Germany to make extra cash.
I started trading in commodities when I was 21. My father, a university professor, had charts of sugar and rubber in his office as he would do his own trading, so I picked that up from him.
After graduation, I returned to Singapore and worked as a defense scientist for the government. Two years into the job, I saw that Goldman Sachs was looking for a trainee oil trader. There was about six months of interviews because more than 200 applicants applied.
I ended up getting the job, but it was a massive risk as I had to break the bond I was on and pay back the remaining six years’ worth. It was a calculated risk, but I never looked back, I knew this was something I definitely wanted to do.
Q: What was your start in banking like?
A: When I got into banking in 1996, training was mostly on the job. When my boss spoke on the phone with a client, he would get me to listen in so I could learn. As he was very busy, I could only ask him questions over the phone on his drive home every day. I also learnt by reading all the commodity publications and underlining the relevant bits to my boss.
About four months into the job, my boss was transferred to London, and they told me to run the Singapore book for light products. It was terrifying, in that first month, I dropped half a million dollars but more than made up for it soon after. I also had to fly to Japan to meet senior clients and earn their trust.
It was challenging but good to have that kind of jump start, because it’s when you are on your own and cannot depend on anyone that you learn the most.
Q: What’s a typical day for you at Standard Chartered?
A: I usually get in at 8am. I start my day clearing my emails and reading market reports. At 10am I sit down with the team to strategise and plan where we are going to position ourselves. The first half of my day is spent analysing, brainstorming and meeting people to exchange ideas and information.
From 4.00pm on, it’s very active because that’s when the traders execute their trades and I also speak to our team in London. It’s not just about management though; I roll up my sleeves; I have my own clients and put in positions to trade.
I usually leave the office about 7.00pm, although I continue to monitor the markets. My last work call is usually at 10pm when I speak to the head of metals in London.
Q: What was the toughest career challenge you faced and how did you cope with that?
A: There are challenges every day. When you first start as a junior trader the challenge is to make money. A good trader knows how to react when they are losing money; that’s easy to say, but difficult to do. When you are running a book that’s down seven or $10m, emotions can take over.
As you get more senior, the challenge is to build the business. You have to see what additional revenue streams can be brought in, so you need to be forward thinking and keep abreast of what’s happening.
Q: What are the prospects for the Asia Pacific region?
A: Relative to many other regions, Asia has weathered the global financial crisis well. Most of Asian countries learnt valuable lessons from the 1997 Asian Crisis and were much better prepared during the global financial crisis. You could say Asia had a successful crisis relative to many other regions in the world and today, Asia continues to not just lead Asian recovery, but also drive growth. In most sectors, including banking, we are seeing strong hiring and momentum.
Asia is considered a ‘home market’ for Standard Chartered – the growth of the trade corridors have also contributed to Asian playing a huge role in our global commodities business. We continue to see tremendous growth opportunities.
Q: What are your favorite interview questions to ask candidates? And what sort of responses are you looking for?
A: One question would be, ‘Where do you see yourself in five years time?’ If the candidate has no idea, then he or she isn’t the right person, we are looking for someone with ambition and goals.
At the senior level, I like to understand what the candidate’s management style is like. Are they a producing manager that adds value?
For trading roles, I ask what the candidate thinks of certain trades. I want to see what their analysis and train of thought is like. This is usually the second or third question I ask. It’s also the make-or-break question, where I decide if we should carry on with the interview or not.
I am currently dealing with physical commodities – namely bitumen, recycled fuel oil, coal and kempas. Back to back.
I would like to get bigger exposure in a bigger establishment.
Anyone able to link me up? Kindly do email me brandonbeh@hotmail.com
Many thanks.