BFC5926 Assignment S2 2019

This document provides instructions for a group trading assignment using the Monash Stocktrak real-time trading platform. Students must form groups of 2-3 people, with one group member registering the group using the provided link. Each group will have $1,000,000 of initial portfolio value to trade stocks, bonds, currencies and other financial instruments over several trading windows. The goal is to gain experience using a trading platform and writing a report analyzing their pre-and post-trade performance. The report is due October 8th and must be submitted both online and as a hard copy.

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BFC5926 Assignment S2 2019

Uploaded by

Mengdi Zhang

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BFC5926 Financial Institutions and Markets Assignment

This is a trading assignment that utilizes Monash Stocktrak real-time trading

platform. After forming a group, you must register your group using the following
link:
https://monash.stocktrak.com/members/register?admin=4387648&tournament=142882

Only one registration is allowed per group. The administrator is ‘ahuehwa’ and
the challenge name is ‘BFC5926 Trading Assignment (S2 2019)’. The contest
password is: BFC5926S22019. You will need to create a user name and password
for your own group. This information will be used for each group member to
login and make trades. You will have access to all of the features that actual
traders receive, including real-time quotes, news and a variety of charts.

Each group will have $1,000,000 of initial portfolio value. The goal of this
assignment is to get you familiar with a version of trading platform and perform
a number of trades after analysing the markets. In the end, you are required to
write a report to outline your analysis (pre-trade) and report the performance
(post-trade), reflect on your actual return against your expectation.

Since trades are real time, you will only have a limited window to execute your
trade (see below). So it is important that you follow the instruction and monitor
your account so that you can execute your trade within the instructed trading
window.

Opening window Underlying instruments Closing window

26 August 2019 Short term rates 29 August to 2 September
2 September 2019 Bonds 5 to 9 September
9 September 2019 Equity and Indices 12 to 16 September
16 September 2019 FX 19 to 23 September

On the opening window, you must take a position on each of the underlying
instrument (as outlined in the above table) and provide a report explaining why
you take such position. Each instrument is designed to follow the topic that is

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covered in the lecture for that week. Refer to the Assignment Marking Guide
on page 5 for further details. Marks are awarded for the level of detail analysis,
data collection, and news coverage on each instrument. You could take either a
long or short position depending on your view of the future value of that asset at
the closing window. Close out your position on the closing window. There are
many tutorial videos on how to execute your trade after you have registered your
group.

Assignment administrative details:

Q1: Group structure?

A1: This is a group assignment of two to three students in the same seminar
stream. You cannot have more than three students in a group. Only ONE person
should register for the group as indicated earlier.

Students are expected to form their own syndicates and submit a hardcopy of
the completed BFC5926 Designation of Group Member form (to be
downloaded from Moodle) to their lecturer by their Week 3 seminar.

Q2: Can I do the assignment by myself?

A2: No, you cannot do this assignment by yourself. It’s a group assignment.

Q3: What is the word limit?

A3: The word limit is 2,000 words: excluding any charts, graphs, tables,
reference lists, appendices, and the title page.

Q4: What’s the format of this assignment? Do I need to strictly follow the report
format from Q Manual?

A4: You do not need follow the standard of a professional consultancy report.
The letter of transmittal, executive summary is not needed. However, there must
be an introduction and conclusion. The body should have a number of sections
with appropriate headings. The easiest option is to follow the questions designed
above.

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Q5: Due date?

A5: 4 PM on Tuesday 8 October 2019.

Q6: How do I submit the assignment?

A6: You must submit ONE HARD COPY of your assignment into the
Assignment Box AND ONE ELECTRONIC COPY through Moodle. Details
are as follow:

ONE hard copy for each group is to be submitted in the assignment box on level
10, Menzies building. The hard copy version of the assignment (stapled, no
binders or folders) must be submitted together with signed the combined faculty
assignment cover sheet and statement of participation in group assignment
form (available on Moodle).

Each student must sign the coversheet. One coversheet should be enough for
the group. It is important that you indicate in the coversheet who is your lecture
as that person will mark and return your assignment. Assignment without lecture
name will make it difficult to return to you.

ONE electronic copy must be submitted via the Moodle Assignment Submission
Link by the group leader.

Q7: Can I have group members from different workshop?

A7: NO

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Suggested structure of the assignment:

1. Introduction
2. Short term rate
3. Bond
4. Equity and indices
5. FX
6. Conclusion
7. Appendices
The appendices are important to show each of your transaction in your
account. It should provide all the information (date, time, price and number
of contracts) of each transactions and their profit/loss. You should also
include opening and closing balance of your account and all the
transactions that have taken place within your portfolio.

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BFC5926 Assignment Marking Guide

Names: _________________________________________________________________________

Workshop Date/time: _______________________________________________________

Workshop Lecturer: _______________________________________________________

Marks
available
1. Introduction: This section introduces your report. 5
Outline what the readers are expecting from the report
and summarise the overall result of the portfolio
2. Short term rate: These instruments are under bond 15
heading. You must choose the appropriate short term
instrument. Since there is no current active treasury bill
for trading, we will accept the trading of treasury notes
maturing within 12 months.

You must show that you understand the underlying

instrument. Explain your view of the instrument and why
you think it may move up/down next week. Execute your
transaction accordingly. Close out the position and reflect
on how the closing price are in line with your expectation
OR different from your expectation.

3. Bond: These instruments are under bond heading. Again, 20

you must explain that you understand the underlying
instrument and repeat the process above for bond.
4. Equity and indices: Spoilt for choice here. These are 30 (15+15)
under stocks and ETF. You need to execute 2 trades here,
one for an individual share and one for an index. Follow
the above format for each trade.
5. FX: Again, plenty of options to choose from under trade 20
Spots heading. This one is a bit more complex as you
must look at both currencies to conduct your prediction.
So choose carefully. Repeat the process above.
6. Reflect on the overall performance of your predictions. 10
TOTAL 100

Minus marks for no reference list; for poor quality references; poor
appendices; if the graphs and charts are not properly sourced and
referenced; poor written expression.