Philip Wright, CFA
CAREER HIGHLIGHTS

• CFA charterholder since 1993
• Worked in public debt markets in Toronto and New York
• Past Chair of CFA Society Toronto’s Fixed Income Committee
• Directed organization of the Toronto Global Fixed Income Conference
• Led efforts to bring Mark Carney to CFA Society Toronto luncheon in 2013
• Advocate for adoption of electronic trading by OTC debt and derivative markets

What was your motivation for pursuing a CFA charter?

Education! I wanted to upgrade my skills to a postgraduate level, but taking two years off was not an option with a house full of kids. CFA Institute provided the best avenue for me to receive a specialized education in ethics and finance without disrupting my career or family commitments.

How has the CFA program helped your career?

Initially, it allowed me to interact with my clients on their level and to be more effective at meeting their needs. In time, I became involved with CFA Society Toronto’s Fixed Income Committee, which expanded my professional network and presented opportunities to do new and interesting work. More recently, it helped me to participate in industry debates on market structure and regulatory reform.

What were the highlights in your career?

Without exception, they have occurred while building something new. I am most pleased with what we have achieved at CanDeal. Starting with little more than a good idea, CanDeal now transacts over $2 trillion dollars each year. Further, CanDeal’s solutions have altered industry behaviour and how the market performs price discovery, executes trades, manages risk, and measures performance. It has been a rewarding experience.

One of the highlights for CFA Society Toronto in 2013 was our luncheon with Bank of Canada Governor Mark Carney. Can you comment on your multi-year effort to secure his engagement?

We recognized early on that Governor Carney would be a departure from tradition, and we were quick to extend our invitation, even before he had formally assumed the role. But we could not foresee the credit crisis or his subsequent importance on the world stage, which meant that we would have to take a back seat for a while. I found it rewarding to work with the Bank of Canada’s communications team on this event. They were very gracious and professional in their approach.

I had the pleasure of sitting with the Governor during the lunch, and I was impressed by his casual and open demeanour, his humour and intellect, and his genuine interest in what we are doing at CFA Society Toronto.

What are the biggest changes that you have observed during your career?

I think that the biggest changes have been in the areas of globalization, technology, and the speed at which people can communicate. They have altered every aspect of the financial markets, from the nature of capital to investor expectations. One of the biggest challenges we face right now is creating a global regulatory framework that is suitable for our local markets but is also enforceable across political boundaries, while ensuring we do not experience any capital outflows, regulatory arbitrage, or introduce new sources of risk. This is really complex stuff.

Can you share some highlights of your term as a member of the Fixed Income Committee?

Everyone talks about the Mark Carney luncheon, but the most rewarding event I was involved in was bringing the Global Fixed Income Conference to Toronto in 2011. It was the first time CFA Institute had held this type of conference outside of the United States. As with the Mark Carney luncheon, it required patience and persistence. It was an exercise in teamwork that required a unified effort from the Fixed Income Committee, local Society staff, and conference planners in Charlottesville. Peter Jarvis supported this initiative and created an opportunity for me to sell it to CFA Institute’s CEO , John Rogers. Once the mandate was given, we worked quickly to design a world-class program, engage top-tier speakers, and obtain corporate sponsorships. We hit the ball out of the park! It was a great team effort where everyone contributed to the success.

How were the fixed income markets impacted by the recent financial crisis?

To my mind, the impact was most apparent in the areas of risk management and liquidity. The events of 2007 exposed systemic risks that are being addressed at a global level through coordinated regulatory reform, heightened capital requirements, and investment in new infrastructure. As well, there has been a paradigm shift in the relationship between the front and middle offices, where risk officers now rule the roost. In the past, business came first and risk was a secondary consideration. That relationship has changed and risk is now the primary consideration before undertaking new business initiatives in the front office. On the liquidity front, dealers are much more diligent in their allocation of capital and management of inventories, which has some market participants exploring alternative market models and sources of liquidity.

Can you share your insights on how technology will affect investment management?

Sure. I think the next big thing will be data-driven decision making. Trusting one’s gut will always be part of the investment process, but analyzing empirical evidence to validate one’s execution is a critical step. Transaction analysis has gained momentum in the equity sector, and I expect that it will be a key driver for debt investors, going forward, as more participants harness the data available to them. As well, regulators will have new data-driven tools to bolster their market oversight and enforcement efforts.

How do you see the industry evolving over the next few years?

I am optimistic. Operationally, I think technology will lighten regulatory burdens while creating new opportunities to improve productivity, efficiency, and mitigate risk. On the retail side, I think the relationship between investors and their advisors will continue to improve as the debate around fiduciary responsibility and accountability evolves. In OTC debt markets, I expect to see a higher level of transparency and regulators requiring trade reporting. In the OTC derivatives space, we should see commoditization of benchmark tenors to promote liquidity and the efficient transfer of risk. Finally, I expect some shadow banking activities will be brought under a regulatory umbrella and will offer innovative solutions to problems that conventional markets have not yet resolved.

What advice would you give to people just starting their careers in the finance industry?

Focus on execution. Invest in the basics and become very skilled at your process. The rest will follow. That said, remember that this is a business of personal relationships. Push back against the forces of isolation that can keep you glued to your desk. Get out there, volunteer, expand your network, find opportunities to work with new and engaged people, have some fun. The personal bonds you forge today will reward you with new ideas and opportunities and sustain you in the long term.