High-Speed Stock Trading. Trading Simulation Background Information RAM Corp. is a Top Tier ERP software vendor which stock is traded around $100. Suddenly.

Slides:

Advertisements

Similar presentations

Amazon. Cloud computing also known as on-demand computing or utility computing. Similar to other utility providers like electric, water, and natural gas,

Advertisements

9.2 How to invest in corporations

Cash Flows for Stockholders

INVESTMENT GAME IN SOCIAL NETWORK Academic Advisor: Dr. Yuval Alovici Professional Advisor: Dr. Mayer Goldberg Team Members: Ido Bercovich Dikla Mordechay.

5 5 C h a p t e r The stock market second edition Fundamentals of Investments Valuation & Management Charles J. Corrado Bradford D. Jordan McGraw Hill.

GBUS502 Vicentiu Covrig 1 Financial Markets and Institutions (chapter 2)

McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Securities Markets CHAPTER 3.

Investing in your future. What is INVESTORS OF TOMORROW? Investors of Tomorrow strives for excellence in fulfilling the mandate of providing financial.

Rotman Interactive Trader RIT Software for simulated trading.

Key Terms from the World of Finance. Key Terms AMEX – Stands for American Stock Exchange. Located in New York City, this stock exchange sells memberships,

Buying Stock Reading Stock Tables. Stock Indexes  Standard & Poor's 500 Index  Contains the stocks of 500 U.S. corporations,  All of the stocks in.

Grid and Cloud Computing By: Simon Luangsisombath.

By: Devin Hawthorne, Danny Goode, Morgan Booker, Keaton Marlow, Erica Shambo, and Tommy Roach!!!!!!!!

Intro to Business.  Captain - Coordinates the efforts of entire team including team activities, maintaining password, making final decisions, and checking.

SmarTrader Analytical/research software system © ITC Software.

Radka Hlavnová.  (FX Market, Forex Market,Currency market)  Is a form of exchange for the global trading of international currencies  An exchange market.

STOCKS AND STOCK MARKET Vypracovala: Zuzana Kunzová.

Stock markets exists all over the world. The biggest in the United States is the New York Stock Exchange (NYSE), but the NASDAQ is very big also. Other.

CLOUD COMPUTING. A general term for anything that involves delivering hosted services over the Internet. And Cloud is referred to the hardware and software.

Banking Clouds V International Youth Banking Forum.

Stock as an Investment.  Capital Appreciation: stock may become more valuable and the holder can buy low and sell high  Dividend: investor gets a share.

Financial Markets and Institutions  The Capital Allocation Process  Financial Markets  Financial Institutions  Stock Markets and Returns  Stock Market.

The Stock Market Understand the risks Describe how stocks are traded

S LIDE 1.1 The Language of Financial Markets Quiz Bowl Game Board Invest in This Potent Investments Index or Exchange Earn It Who am I? Financial Markets.

WOW 8 – THE STOCK MARKET. STOCK EXCHANGE: One of the organized stock markets with a centralized trading floor. Auction-type trading allows traders to.

Investing Continued.  A stock is a share of a stock  It entitles the buyer to a certain part of the future profits and assets of a corporation selling.

Xiamen University, IFAS Copyright© 2009 The Center for Research in Security Prices IFAS of Xiamen University Charles Lee.

Global Trading DMA enabling Algo DMA open up possibilities and more importantly, creates a new ground for open competition.

The New York Stock Exchange Stock is bought and sold on stock exchanges. The largest and most prestigious is the New York Stock Exchange, abbreviated.

Opening Keynote Presentation An Architecture for Intelligent Trading  Alessandro Petroni – Senior Principal Architect, Financial Services, TIBCO Software.

TRANSFORMING IT.  The cloud is a group of servers.  A user interacts with the cloud without worrying about how it is implemented. Cloud computing describes.

Cloud Computing The coming storm. Bio  Robert Fox - Data Architect, Arkansas Blue Cross Blue Shield  18 years of data architecture and warehousing experience.

Chapter 19 Securities Markets. What Are Securities Markets?  Financial markets for stocks and bonds  Assist businesses in finding capital  Provide.

Fact or Fiction 1. Only rich people invest money in the stock market. Fiction: anyone that has money can invest. 2. Stocks & bonds are always risky places.

CHAPTER 2 Financial Markets and Institutions

Copyright © 2012 Axceleon Intellectual Property All rights reserved HPC User Forum, Dearborn MI. Our Focus: Enable HPC solutions in the Cloud for our Customer.

Chapter 5 Designing Web Sites. Awad –Electronic Commerce 1/e © 2002 Prentice Hall 2 OBJECTIVES Why a Website? Life Cycle of Site Building Ways to Build.

Lecture 2: Financial Markets and Institutions Financial Management.

1 Risk Cash flows do not match EXPECTATION. Is a company with roller-coaster like sales figure a risky company? Why are Pharmaceutical companies so big?

CH 7: The foreign exchange market 1 Foreign Exchange Market Did you know that the foreign exchange market (also known as FX or forex) is the largest.

Chapter 3 How Securities are Traded. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. Primary vs. Secondary Security Sales.

Grid Computing at The Hartford Condor Week 2008 Robert Nordlund

What is an Exchange? Before You Invest. Markets In The Stock Market Game, students buy and sell stocks and mutual funds listed on the three major US stock.

What are Stocks?  A stock represents a share in the ownership of a company.  Ownership of stock is represented by a stock certificate.  These days,

Essentials of Investments © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Fourth Edition Irwin / McGraw-Hill Bodie Kane Marcus 1 Chapter 3.

Saving & investing WHAT’S THE DIFFERENCE? WHICH ONE WILL EARN ME MORE MONEY?

Mission: “ To increase the profit of my client little by little as it becomes big. To do the things right at the first time.” Vision: “Don’t work for the.

P604, Pay debts 2. Raise money  Ex. To expand business.

THE STOCK MARKET. THE FINANCIAL SYSTEM The financial system is a network of institutions which connect investors with borrowers. Institutions in the financial.

STOCK MARKET GAME ENTERING STOCKS. STOCK MARKET GAME.

BINGO!. Please fill in the board with the following Brand Name Parent Company Subsidiary Opportunity Cost Private companies IPO Public Companies Dividends.

Chapter 3 How Securities are Traded. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. Primary vs. Secondary Security Sales.

EQUITY MARKETS Sokolova Ksenia. EQUITY MARKETS: DEFINITION  The market in which shares are issued and traded, either through exchanges or over-the-counter.

 Savings – income not used for consumption  Investment – the use of income today that allows for a future benefit  Financial System – all the institutions.

Facebook’s IPO Click on this video link to get some background information on the Facebook IPO.

Georgia Council on Economic Education w w w. g c e e. o r g.

Introduction to Economics Johnstown High School Mr. Cox The Stock Market.

How do Stock Markets Work?. Stocks involve more RISK than Bonds.

CHAPTER 3 Investments How Securities Are Traded Slides by Richard D. Johnson Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin.

Motivation §Do you know of any stock exchanges? Stock Exchanges §Know characteristics about some exchanges (NYSE, NASDAQ). §Analyze how technology is.

WOW 6 – The Stock Market. Stock Exchange: One of the organized stock markets with a centralized trading floor. Auction-type trading allows traders to.

Djohan Wahyudi Supervised by: Prof. Dr. Pericles A. Mitkas Vivia Nikolaidou 1.

E-business Infrastructure

IS 356 IT for Financial Services

What is the Stock Market, anyway?

Global Corporate Fast Facts

Motivation Do you know of any stock exchanges?.

THE STOCK MARKET The stock market/exchange is a secondary market where securities (stocks and bonds) are bought and (re)sold → stock is sold as individual.

What is the Stock Market, anyway?

Business and Finance Mr. I.

Presentation transcript:

High-Speed Stock Trading

Trading Simulation Background Information RAM Corp. is a Top Tier ERP software vendor which stock is traded around $100. Suddenly it is reported that the CEO of RAM Corp CEO has gone missing, stock price plunge as traders scrambled to sell off RAM’s stocks

Trading Simulation Rumour has surfaced that the CEO is in fact alive and sound and will be returning to the office. Now as traders, your mission is to buy RAM Corp’s stock at the lowest price possible.

Trading Simulation Please open the following webpage: (DON’T click “Buy This Stock” button!)

Trading Simulation Wait until you see the lowest price at the ticker ….then click “Buy This Stock”! Price Time 100 Lowest Click!

Trading Simulation Check your ranking As you can see, we purchased RAM Corp’s stock at the lowest price possible. This is because we can place the order 0.03 sec ahead of you!!

History of Stock Trading The NYSE took shape in New York City in the 1790s. The NYSE introduced in 1867 a stock ticker. (telegraphic receiving instrument) After 1878, due to telephone invention, the trading time was reduced from 15 minutes to less than 60 seconds. 15min sec

History In 1978 was inaugurated the Inter-market Trading System (ITS). This system used computers to connect the NYSE to other stock exchanges. In 1998: electronic exchanges were authorized. Currently: companies use powerful algorithms 15min sec sec 2000

High-Speed stock trading Computer programs that order stocks without human intervention Directly connected to stock exchanges in the world It gets real-time information: stock price, trading volume, trading cost The system finds out the price difference between exchanges. It also defines the best timing and amount of transactions.

High-Speed Stock Trading Real time analysis Simulation Performance High-speed data transfer

High Speed Stock Trading Investment Banker, Hedge funds gain $210 billion in profit from the high speed trading. Percentage of System-Trading in Trading volume is increasing: from 35% to 73%

System Trading -Infrastructure- Stock Exchange Stock Price Data Place order Trading system Data Transfer Direct connection to Stock Exchange High-speed connection Performance Grid-Based High Performance System Simulation Real-Time Decide When to sell What amount to sell Get Current price Current trading volume

System Trading vs Discretionary Trading Stock Exchange Stock BrokersInvestors Companies with System trading (Hedge Funds, Investment Bank) sec 1-5sec 1sec 0.03sec 1sec

Infrastructure Grid Computing –Subset of Cloud computing –Scalable system: Clusters of networked PC –Processing in Parallel Allocate Task Simulation Result

Grid + SOA = GOA(Grid Oriented Architecture) NOT one system = one software. Virtualized Resources System User Application Layer

Case Study –Goldman Sachs Developed original system since 1980s –Generated more than $4 billion per year Expanded system worldwide –GSAT (Goldman Sachs Algorithm Trading) Providing customers high-speed Trading

Case Study –UBS European leader of system trading –Developed grid system in 2005 –Operating system with 2,000 PCs –Has excess capacity proving cloud services (System-trading) to customers

Flash Trading Goldman Sachs can get price info 0.03 sec faster than other traders. With high-speed trading system, they can do front-running. (Place their order before customer’s) FRB will restrict fast access to Stock Exchange

Cloud computing in High-Speed Trading Nasdaq DataStore –Amazon S3 technology (Saas) –Providing real-time price / trade info needed to system trading New technology boost competition

Takeaway System-Trading enables traders to place order in mili-seconds. Technology improvement has boosted competition. Competition in High-Speed Trading is ongoing… until reaching sec?

Q&A Any question?

Appendix -Trading Simulation- Ajax+PHP Application Server Database Server (Mysql) Auto-Price Update Price info Transaction Data PHP+MySQL