1. Rice Stock Market Simulator (RSMS) Comp 415 Rice University

2. RSMS Outline Introduction RSMS Features RSMS Demonstration Log-in process Creating Bids/Offers Canceling Orders Publishing orders into the market stored on files Plans for the Future Questions & Answers

3. Introduction Rice Stock Market Simulator (RSMS) is a platform for simulating a market environment. Receives market offers and bids Matches offers and bids to create transactions Allows users to query for subsets of market items in storage Allows users to cancel orders

4. Current RSMS Features Allows for human and automated clients Humans can place simple bids, offers, and cancel orders Automated clients can read files consisting of simple ITCH messages and send these orders to the market Simple user interface that allows the user to view bids, offers, and transactions in the market Allows multiple clients to communicate with the simulated market on different machines

5. Demonstration A walk-through of the features in RSMS.

6. Participant Log On Provides a secure entry point to RSMS Gives the user control to choose either a human or ITCH participant A username/password combination is used to authenticate a given participant with RSMS For now this authentication process is not implemented

7. How to Log-In Select one of the user names in the User Name list Select a Participant type (either Human or ITCH) Press the “Start” Button

8. Creating Bids/Offers Press the “Post Bid” or “Post Offer” Button Fill in the respective values for all fields You can put an optional expiration date for your bid or offer In the future, this expiration date can be used to clean up expired orders in the market at the end of the day Press the “Post Bid” or “Post Offer” Button and your bid or offer should be posted in the market. To view the bid/offer, press the “Refresh” Button in the Current Market tab To cancel an order, right-click on it and select Cancel “Offer/Bid”

9. Reading Orders from Files Enter a SoupFile to read from, and press “OK” An simple example has been provided as “ItchSampleFile.txt” The file is parsed according to ITCH specifications, and orders are sent to the market The messages are sent in the order they came in the file, but will later be sorted and sent according to timestamp To view the orders, you must exit and log on as a Human Participant

10. Immediate Plans Add administrative and time features to the market Allow an administrator to start and stop simulations Provide market intelligence to simulate the open and closing of the market each day Send daily market information to an external database for later use for speed issues Implement the authentication intelligence to ensure security

11. Long-term Plans RSMS will be able to replay market history data and allow humans or automated systems to test their strategies with this data The model behind the market interaction between current participants and historical data needs to be researched Historical data from INET is needed. RSMS is envisioned to be a testing platform for existing systems at HBK Applications would simply target their messages towards RSMS as opposed to the real market. What is the best way to facilitate this feature?

12. Long-term Plans RSMS should also be a testing environment for traders Traders can test their strategies before they handle physical money in the real market The user interface would need to be revised to accommodate this We need to see an actual trading environment We would also need to consult with actual traders to see how they would like to view market information

13. Questions & Answers Thank you for your time!