Computer-Based Trading RoomDec04-05

Client: ISU College of Business

Advisor: Dr. Gerald B. Sheblé

Team MembersSteve Saillard

Vipul Tiwari

Dan Fitch

Fahim Godil

Sept 16, 2004

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

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

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

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

Operating Environment

Central server is Apache

Plasma monitors that will display trading and market updates

Computer lab located in Gerdin Building

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

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

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

Deliverables

Project Plan Poster Design Report Final Report and Requirements End Product with games available for students

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

Approaches Used

MySQL option– Apache Server– Coding was done in Java– Design flowchart

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

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

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

Design

Five aspects of the CBTR– User Interface– Professor Interface– Server Interface– Plasma Display Interface– MySQL Database

Design

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

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

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

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

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

CBTR Lab

Resources

Estimated hours per Engineer

Fahim Godil

Dan Fitch

Steve Saillard

Vipul Tiwari

Member

Class

Meetin

gs

Research

Documentation

Coding

Overall

Fahim Godil 15 30 20 20 40 125

Dan Fitch15 30 20 20 40 125

Steve Saillard15 20 30 20 40 125

Vipul Tiwari 15 20 30 20 40 125

Totals 60 100 100 80 160 500

Timeline

Resources

Item W/O Labor With Labor

Parts and Materials

Poster $45.00 $45.00

Miscellaneous Binding $5.00 $5.00

Copying $15.00 $15.00

Subtotal $65.00 $65.00

Labor at $11 per hour

Fahim Godil $1375.00

Dan Fitch $1375.00

Steve Saillard $1375.00

Vipul Tiwari $1375.00

Subtotal $5500.00

Total $65.00 $5565.00

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

Lessons Learned

Non-technical knowledge gained– Commodity trading– Reactions in market

What would be done different– Broken up into two person groups more often

Risks

Anticipated Potential Risks– Loss of a team member– Loss of code

Unanticipated risks– Amount of communication with College of Business for

server specifications

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

Questions?