Current undergraduate Rotman Commerce students are invited to participate in the Commerce Trading Competition hosted by the BMO Financial Group Finance Research and Trading Lab at the Rotman School of Management (Rotman FRT-Lab).
Teams will compete in a unique simulated market challenge where they will navigate Decision Cases based on real-world conditions delivered on the industry-leading RIT Market Simulator platform. This is an exciting opportunity to test your collective decision-making skills in a safe environment and engage in a friendly competition with your peers!
*After registration, please join us for an optional practice session on October 31st at 4:00 pm – 5:00 pm in-person at the lab.
BMO Financial Group Finance Research and Trading Lab
Rotman School of Management
Room 290, North Building
105 St. George St.
Toronto, ON M5S 3E6
Liquidity Risk Case
The Liquidity Risk Case challenges participants to put their critical thinking and analytical abilities to test in an environment that requires them to evaluate the liquidity risk associated with tender offers. Participants will be faced with multiple tender offers throughout the Case. This will require participants to make rapid judgments on the profitability, subsequent acceptance and execution, or rejection, of each offer. Profits can be generated by taking advantage of price differentials between market prices and prices offered in the private tenders. Once any tender has been accepted, participants should aim to efficiently close out their large positions to maximize returns and minimize liquidity and market risks. In addition, participants learn about risk management by avoiding front-running and other speculative strategies, which are considered unethical and illegal trading practices that may incur fines.
Price Discovery Case
The objective of this case is to educate students on how markets serve as a platform for determining prices when multiple traders possess diverse information and perspectives on specific securities. By acting upon the information available to them, including insights derived from the market price of a security, traders should be able to successfully resolve the case and trade the security to its precise value before the case concludes.
This case further enhances the understanding of market equilibrium principles by introducing two tradable securities and an exchange-traded fund (ETF). The ETF is composed of one unit of each of the two securities, resulting in its value being equivalent to the combined value of these two securities. It is crucial for traders to recognize that the information derived from both securities directly impacts the value of the ETF. Consequently, the ETF’s value is expected to be more accurate than that of the individual securities. Traders should also be attentive to and capitalize on any arbitrage opportunities that may arise between the ETF and its underlying components.
Rotman Commerce Finance Association (RCFA) is a professional business competition, so participants are expected to dress in business casual or formal business attire.
Competition participants are responsible for following health and safety measures where applicable. Individuals should report health and safety concerns to the competition committee via email at financelab[at]rotman.utoronto.ca, who will promptly review, assess and implement measures to address the concern where appropriate.
Measure to reduce risk of exposure:
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