Global Markets Simulation – Fixed Income & Currencies
An exciting and competitive experiential simulation where learners get to experience first-hand the roles of trader and market maker in a fast paced and competitive environment. A great simulation for those new to financial markets, investment banking, global market roles and asset management.
A simulation that explores the role of trader…
Participants work in teams made up of Traders and Market Makers. Traders receive orders from clients, each order representing a buy or sell order for a given asset class such as equities, bonds or currencies. The Trader needs to stay on top of stock news, analyse price charts and based on market analysis, buy and sell client orders at the most competitive price. Traders earn commission on successfully executing trades.
…And market maker…
The Market Makers main objective is to create liquidity in the market. The exchange lists all the quotes submitted by the various Market Makers in the simulation. In the Market Maker role, the learner will track market news, access the competition and periodically submit two-way quotes in the market. The Market Maker executes trades with Traders from other teams, capitalising on price movements and profit from market fluctuations.
And also develops technical & interpersonal skills
In the simulation, the primary challenge Traders face is to communicate and negotiate with other Market Makers in order to get the best price to fulfill the greatest number of client orders. In contrast, Market Makers need to manage their open positions whilst earning a spread on each trade. At the end of each round, the performance is evaluated for every Trader and Market Maker, before learners switch roles.
By rotating between roles, learners gain invaluable technical insights. However, to be successful in the simulation, participants also have to work effectively as a team, communicate clearly and demonstrate critical thinking whilst under time pressure – helping to develop and explore key professional skills too.
Learning outcomes include…
A better understanding of the differences between the role of a Sales Trader and a Market Maker
A better understanding of the differences between the role of a Sales Trader and a Market Maker
A stronger understanding around the mechanism of a quote driven market
A stronger understanding around the mechanism of a quote driven market
A practical insight into how asset prices fluctuate with trading activity
A practical insight into how asset prices fluctuate with trading activity
A greater understanding of how Traders control price quality of the executed trades and how a Market Maker's open position impacts their P&L
A greater understanding of how Traders control price quality of the executed trades and how a Market Maker’s open position impacts their P&L
