Rice Stock Market Simulator(RSMS)Comp 415

Rice University

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

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

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

Demonstration

A walk-through of the features in RSMS.

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

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

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 andselect Cancel “Offer/Bid”

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

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 authenticationintelligence to ensure security

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 opposedto the real market.

• What is the best way to facilitate thisfeature?

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

theywould like to view market information

Questions & Answers

Thank you for your time!