Computer-Based Trading Room

1. Steve Saillard Vipul Tiwari Dan Fitch Fahim Godil Computer-Based Trading Room Dec04-05 Client: ISU College of Business Advisor: Dr. Gerald B. Sheblé Team Members Sept 16, 2004

2. List of Definitions • Apache An open source HTTP server • CBOT Chicago Board of Trade • Decision support system A tool that assists the user in making educated decisions • Java applet A small java application, typically embedded in a webpage • Market value Last trade price • MySQL Open source database

3. Idea Behind the Project • Proposed by the College of Business • Hands on experience for students • Getting familiar with real world market • Pros and cons of the real market • Tracking each student’s performance by faculty in the lab

4. Acknowledgements • Advisor • Dr. Gerald Sheblé • Client • College of Business at Iowa State University and Professor Richard Carter • Faculty • Dr. John Lamont and Professor Ralph Patterson

5. Problem - Solution • Problem Statement • College of Business needs an efficient and inexpensive software for online trading simulation. • Solution: • Software with real world examples and scenarios

6. Operating Environment • Central server is Apache • Plasma monitors that will display trading and market updates Computer lab located in Gerdin Building

7. Intended Users and Uses • Intended Users • Students enrolled with College of Business • Faculty / Staff • Uses • To get hands on experience of the real market • To face possible scenarios expected in the real market • Track student’s performance • Competitive atmosphere for students

8. Assumptions • Technical • Server is capable of running Apache • Internet browsers are capable of running Java applets • Only one scenario or “game” will be run at a time • Sessions will be optimized to last several hours • Non-technical Assumptions • Users understand English • Users have basic computer skills • Users have a basic understanding of trading based on historical or fictitious sets of stocks and futures

9. Limitations • Efficiency of the Java Virtual Machine • Amount of time to work on the project • Prior knowledge of financial trading • Applet needs to be intuitive • Size of market not explicitly stated • Maximum number of simultaneous users

10. Deliverables • Project Plan • Poster • Design Report • Final Report and Requirements • End Product with games available for students

11. Approaches Considered • RMI • All messages would run on the server • Java Network Interface • Creating socket connections • Developing out own network structure • Microsoft Access 2000 • Easy Database Creation • Not easy to setup for multiple users • MySQL • Database setup • Coding in SQL

12. Approaches Used • MySQL option • Apache Server • Coding was done in Java • Design flowchart

13. Research • Web-based trading programs • CBOT simulator • Client requirements • Client was satisfied with CBOT • Client wanted something similar • First Semester • Allocating tasks • Researching and designing a flowchart on how the project goals will be accomplished

14. Research • Second Semester • Implementing the ideas from first semester • Add onto the existing prototype from last semester • Running the present prototype through certain test cases • Coming up with efficient ways to update the database on a timely basis by current values from the market

15. Design • Design a computer-based trading room environment for 24 users and one professor • Emulate software used by major trading firms • Simulate potential situations that may be faced in the workplace

16. Design • Five aspects of the CBTR • User Interface • Professor Interface • Server Interface • Plasma Display Interface • MySQL Database

17. Design

18. Design • User Functions • Place, buy or sell orders • Receive current market information • Receive their current assets • Server Functions • Receive current market information • Receive current orders • Processes orders • Updates user’s assets

19. Design • Professor Functions • Select market information to start game • Receive current users information • Receive current market information • Change future market information during game • Modify display information for the plasma screens

20. Design • Plasma Functions • Receive market or user information • Display market or user information • MySQL Database • Predefined tables • Tables can be modified by the user, professor and server

21. Accomplishments • Prototype completed Spring 2004 • Client demo provided feedback • Finalized the GUI for the user interface • Developed the SQL connection software to be used by the user, professor, server and plasma interface

22. Future Work • Complete application development • Student • Professor • Plasma Display • Server • Finalize database connection classes • Modify code to run as an applet • Test Applications • Set up lab in the Gerdin Building

23. CBTR Lab

24. Resources

25. Timeline

26. Resources

27. Lessons Learned • What went well • Team interaction • Learning about markets • What did not go well • Setting meeting times • Finalizing approach • Technical knowledge gained • Java • SQL • Apache

28. Lessons Learned • Non-technical knowledge gained • Commodity trading • Reactions in market • What would be done different • Broken up into two person groups more often

29. Risks • Anticipated Potential Risks • Loss of a team member • Loss of code • Unanticipated risks • Amount of communication with College of Business for server specifications

30. Summary • Most simulators are proprietary • Available market simulators costly • Prestige to the Finance Department and College of Business • Expandable to update values based on live feeds

31. Questions?