APPROPRIATE BENCHMARK

"For equity, if it's a large, liquid stock and the order is executed over a period, VWAP is a good benchmark to
measure against the market average. For immediate execution quality, the mid-market price at the time of
trade is key. TWAP can be useful for orders executed steadily over a longer timeframe.
FX, MONEY MARKETS, FUTURES, AND OPTIONS
For a bond, I'd look for comparable bonds with similar credit ratings, maturity, issuer type, and industry.
The relevant government bond yield curve (e.g., Bund curve for a Euro-denominated corporate bond) plus
an appropriate credit spread is crucial. Broad market indices like the Bloomberg Barclays Aggregate can also
provide context."
From a data validation perspective, each asset class has specific benchmarks.
For FX, it’s crucial to compare trade rates against interbank mid-rates or established reference rates like the
WM/Reuters Fix, ensuring minimal slippage.
For Money Markets, I'd benchmark yields against short-term interest rates like SOFR and yields of similar
short-term instruments.
With Futures, the price should align with the spot price of the underlying asset adjusted for the cost of carry.
The daily settlement price from the exchange is also a key data point.
And for Options, theoretical prices from models like Black-Scholes, considering inputs like underlying price,
strike, volatility, and time to expiration, are vital. Comparing the traded option's implied volatility to the
market's implied volatility surface is also key for validation.
My role in data management would be to ensure we are capturing these benchmark data points accurately and
systematically comparing them to our traded prices to flag any significant deviations.
Implied Volatility In Options Pricing
Implied volatility (IV) is the market's forecast of the likely movement in an underlying security's price. It's
not directly observable but is derived by taking an option's market price and inputting it into an option pricing
model (like Black-Scholes) and then solving for the volatility.
Key Input: Volatility is one of the most significant determinants of an option's price. Higher IV generally
means higher option premiums, as there's a greater chance of a large price swing. Market Sentiment: IV
reflects market expectations of future risk. High IV can indicate uncertainty or fear, while low IV might
suggest complacency. Relative Value: Traders compare an option's IV to its historical volatility or the IV of
other similar options to assess if it's "cheap" or "expensive."
Validating that the IV used or implied by a trade price is reasonable is a key part of option price validation.
Bid-Ask Spread
The bid-ask spread represents the difference between the highest price a buyer is willing to pay (bid) and
the lowest price a seller is willing to accept (ask). It's an implicit transaction cost and a measure of liquidity.
A wider spread indicates lower liquidity and introduces more uncertainty into the 'true' market price. For
valuation, especially for marking-to-market portfolios, a decision needs to be made whether to use the bid
price (for assets held), the ask price (for liabilities), or the mid-price. A wider spread means the difference
between these choices is larger, potentially impacting the reported portfolio value and making precise 'fair
value' determination more challenging. It directly impacts the cost of trading.
Fintech, or Financial Technology, at its core, refers to the use of technology and innovation to provide and
improve financial services. It encompasses a wide range of applications, from mobile payments and digital
lending platforms. Essentially, it's about making financial processes more efficient, accessible, and often,
more data-driven.
SMEs traditionally face significant hurdles in accessing bank loans due to factors like lack of collateral,
opaque financial information, and high transaction costs for banks to serve them.
P2P Lending & Crowdfunding Platforms: These platforms directly connect SMEs seeking funds with
individual or institutional investors.
A major reason SMEs struggle to get funding is 'information asymmetry' – lenders don't have enough
reliable information to assess their creditworthiness accurately.
Fintech's Role: Fintech companies leverage technology like big data analytics, artificial intelligence, and
machine learning to gather and analyze a much wider range of data points beyond traditional financial
statements. This can include transaction data, social media activity, supply chain information, and even
behavioral data.
Impact: This allows for more accurate credit scoring, enabling lenders to better assess the risk of lending to
SMEs, even those without credit histories and collateral. This, in turn, makes lenders more willing to
provide credit, thus alleviating financing constraints.
M&A:
I gathered a wide range of data on key players in the industry. Both domestic (Chinese) and international (e.g.,
German players like B.Braun, Fresenius; Swiss like Infomed)
Financial Data: Revenue, profitability, growth rates. Operational Data: Product portfolios ((e.g., types of
dialyzers, dialysis machines) Qualitative Information: Management team backgrounds, M&A history.
I designed the Excel database with a clear structure, ensuring data consistency and ease of updating.
Financially Attractive: Undervalued relative to peers, or demonstrating strong, consistent growth.
Strategically Aligned: Possessing a unique technology, or having a strong market position that would
benefit a potential acquirer.
TRENDS
One significant trend is the increasing adoption of AI and machine learning in asset management, not just
for generating alpha, but also for operational efficiency, including data management. For example, AI can
be used for detection in pricing data or to automate parts of the reconciliation process. Another related trend is
the growing importance of ESG (Environmental, Social, and Governance) data. Asset managers are under
pressure to integrate ESG factors, and this requires robust data collection, validation, and reporting
capabilities, which presents both challenges and opportunities for data management teams. Finally, the
ongoing transition from LIBOR to alternative reference rates like SOFR continues to impact data systems and
valuation processes across many financial instruments.
Thank you for having me. I'm Tong Liu, currently pursuing my Master's in Bioeconomy at TUM, with an
expected graduation in August 2026. My academic background is rooted in Economics, with a strong focus on
quantitative methods and data analysis, as demonstrated by my published research on Fintech's impact on
SME financing.
Professionally, my resume highlights experiences that bridge finance and data. At Guosen Securities, I was
deeply involved in M&A, conducting financial analysis and due diligence where I honed my skills in
scrutinizing financial data and identifying critical issues like hidden shareholders – an experience that
emphasized the importance of data accuracy.
More recently, at TUM Venture Labs, I've been a Finance Assistant for a biotech startup, designing financial
frameworks, and performing techno-economic analyses using Excel, VBA, and Python. This role has allowed
me to directly apply my analytical and programming skills to optimize processes and ensure data integrity. I'm
also a CFA and FRM Level I candidate, driven by a desire to continuously learn and deepen my understanding
of financial markets.
MEAG appeals to me because it's a leading global asset manager, and I'm particularly impressed by its
commitment to data-driven decision-making and the use of technology, like Microsoft Azure, to optimize
investment strategies. This Data Management division is a perfect fit because it directly aligns with my
passion for ensuring data accuracy, validating financial information, and leveraging technology to improve
processes. I see a great opportunity to apply my analytical skills, my understanding of financial instruments,
and my programming capabilities to contribute to the team's goals of ensuring pricing accuracy and
enhancing data validation tools.
Primarily, I hope to gain practical, hands-on experience in data management within a leading global asset
manager. I want to deepen my understanding of how financial instruments are priced and validated in
real-world scenarios, and how data quality directly impacts trading and control functions. I'm eager to apply
and further develop my technical skills, particularly in Excel, VBA, and R, within a professional setting.
Additionally, I look forward to learning from experienced professionals, understanding the team's workflows,
and contributing to projects that improve data accuracy and process efficiency. Ultimately, I want to make a
tangible contribution while building a strong foundation for my future career in finance and technology.
WHY YOU
My proficiency in Excel, VBA, and Python, coupled with my experience in developing automated solutions
at investment banking I used to interned, demonstrates my ability to leverage technology to solve problems.
More importantly, I have a proactive mindset towards learning and adopting new technologies. I'm not just
comfortable with tech; I'm enthusiastic about using it to improve efficiency and accuracy. My curiosity
and problem-solving approach align well with the innovative spirit often found in tech-driven teams.
WHY Your Major
I recognized a growing trend where sustainability, resource efficiency, and data-driven approaches are
becoming increasingly integral to the financial industry. Bioeconomy, at its heart, is about the sustainable
production and use of biological resources, which inherently involves complex data, economic modeling, and
understanding long-term value creation.
The program at TUM, and my experience with TUM Venture Labs, emphasizes innovation and the practical
application of knowledge. The Bioeconomy field itself is very forward-looking, dealing with new
technologies and business models.
Complementary, Not a Departure, from Finance:
I don't see it as a complete departure from economics or finance, but rather as a specialization that
complements my existing knowledge. The core economic principles of resource allocation, efficiency, and
market analysis are still central. However, Bioeconomy provides a specific, highly relevant context to apply
these principles, especially concerning data-intensive sectors and sustainability considerations.
My continued pursuit of CFA and FRM certifications demonstrates my ongoing commitment to deepening
my core financial expertise alongside this specialized Master's.
Starting the Story (Setting the Scene):
• "During my internship at Guosen Securities, I was deeply involved in the due diligence process,
which meant handling a significant volume of materials daily."
• "I observed that many of the tasks, while crucial, were quite repetitive and manually intensive. This
struck me as an area where we could improve efficiency."
• "My perspective was that the senior analysts' time and expertise would be best utilized focusing on
strategic analysis and deal-making, rather than getting bogged down in more operational, albeit
necessary, tasks."
Identifying the Problem & Your Initiative (Highlighting Proactive Problem-Solving & Technical
Acumen):
• "I noticed a particular bottleneck around creating shareholder structure charts, or equity penetration
diagrams. This was a manual, time-consuming process, yet critical for understanding complex
ownership structures."
• "While the analysts were incredibly skilled financially, coding wasn't their primary expertise. Seeing
this gap, I took the initiative to see if I could automate this."
• "I spent some time understanding their existing workflow, breaking down the process into its core
components. I then developed a Python script that could essentially automate the creation of these
diagrams."
• "The solution I built allowed analysts to simply input the shareholder names and their respective
equity percentages into an Excel template. My Python script would then process this data and
interface with the draw.io API (or a similar diagramming tool library) to automatically generate a
comprehensive equity penetration chart within about a minute."
Explaining the Visual (If you were showing a printout – adapt if not):
• "For instance, if you look at this example (gesturing to the printout), the script would generate
something like this. You can clearly see the different tiers of investors, their percentage stakes, and the
direct and indirect connections between them."
• "This visual representation makes it much faster to grasp complex ownership structures, identify
ultimate beneficial owners, and spot any potential conflicts or unusual patterns."
• "The automation ensured consistency in the diagrams and significantly reduced the chance of manual
errors that can occur when drawing these by hand, especially for multi-layered structures."
Broader Impact & Tool Kit (Showcasing Value Beyond a Single Task):
• "This automation significantly improved the team's efficiency in this specific area. Building on that
success, before I left, I compiled these scripts and some others into a small 'Due Diligence Toolkit' for
the team."
• "This toolkit included the equity chart generator, a script to automate the downloading of publicly
disclosed financial statements from specific portals, and another to assist with automating certain
calculations for cash flow statement updates based on new inputs."
• "The goal was to provide them with sustainable tools to streamline several recurring tasks."
Addressing Potential Concerns & Focusing on Transferable Skills (Bloomberg Access):
• "Of course, for accessing proprietary data like live market feeds, I relied on the authorized Bloomberg
terminal during my internship. While my direct access to that specific database ended with my
internship, the core logic, the programming skills (Python, VBA), and the analytical approach to
problem-solving are all capabilities I've retained and can readily apply here at MEAG."
• "The experience of developing those tools has given me a strong understanding of how to work with
financial data APIs and automate data workflows, which I believe is highly relevant to the Data
Management role."
Impact & Your Philosophy (Connecting to Team Contribution and Motivation):
• "I was really proud that this initiative tangibly improved the senior analysts' workflow and freed up
their time for higher-value strategic work. That was very rewarding."
• "I see my role, especially in a supportive function like data management or as a technically-skilled
team member, as enabling the core strategists or analysts to perform at their best. My goal is to
identify and alleviate those operational burdens through smart automation and efficient data
processes."
• "For me, an internship or a working student role is a two-way street. I gain invaluable practical skills
and industry exposure, and in return, the team benefits from my contributions and fresh perspectives.
It's about mutual growth and achieving common goals, and that’s what truly excites me about the
opportunity here at MEAG."