LIABILITY TRADING CASE

The Liability Trading Case challenges participants to test their critical thinking and analytical skills in an environment where they must evaluate the liquidity risk associated with various tender offers. Throughout the case, participants will encounter multiple tender offers, requiring quick decisions on whether to accept and execute, or reject each offer based on their profitability. Profits can be achieved by exploiting price differentials between market prices and private tender offers. Once a tender is accepted, participants should focus on efficiently closing out their large positions to maximize returns and minimize liquidity and market risks.

ALGORITHMIC MARKET MAKING CASE

The Algorithmic Market Making Case is designed to introduce participants to algorithmic strategies for market making, where the objective is to earn the bid-ask spread while providing liquidity for an individual stock. Participants will need to use their programming skills to develop algorithms with the RIT API to automate trading strategies and respond to changing market conditions. Throughout the case, these algorithms will submit orders to profit by earning the bid-ask spread and pursuing rebates through competitive limit orders that get filled. Given the high-frequency nature of the case, participants are encouraged to develop algorithms that can quickly adapt to rapid changes in market dynamics using their preferred programming languages.