RETC 2016

The Rotman European Trading Competition @ LUISS will be showcasing a unique set of cases that stress different challenges faced by traders. The cases include commodities, equities, and derivatives and are designed to reward participant’s abilities to accurately price the securities and formulate profitable, risk adjusted trading strategies. Cases are run over many iterations in order reduce the element of variance across each team’s scores.

CASE PACKAGE
The full RETC case document can be downloaded here.
[Changes with respect to the original version of the package have been highlighted below]

RETC Cases
Social Outcry
The opening event of the competition gives participants the first opportunity to make an impression on the sponsors, faculty members, and other teams in this fun introduction to the Rotman European Trading Competition. Each participant is trading against experienced professionals from the industry, trying to make his/her case against the professors, and showcasing his/her outcry skills by making fast and loud trading decisions.
Quantitative Outcry Trading Case
Building on the experience of the frantic Social Outcry market, this case will require teams to optimize their trading, analytical, and risk management skills. Participants will use news releases that give quantitative economic forecasts, as well as qualitative micro and macro data, to predict the futures market on the RT100 index. Analyzing macroeconomic indicators, participants should be able to gain an understanding of the impact of the factors on the index and generate profitable trades.
	Electricity Trading Case
The ENEL Electricity Case challenges the ability of the participants to interact with one another in a closed supply and demand market for electricity. Electricity production and its consumption will form the framework for participants to engage in direct trade to meet each other’s objectives. The case will test each individual’s ability to understand sophisticated market dynamics and optimally perform his/her role, while stressing teamwork and communication.
	Credit Risk Case
The Generali Credit Risk Case challenges participants to build and apply a credit risk model in a simulation where corporate bonds are traded. Participants will use both a Structural Model and the Altman Z-Score to predict potential changes to the companies’ credit ratings. Periodic news updates will require participants to make appropriate adjustments to the assumptions in their models and rebalance their portfolios accordingly. This case will test participants’ ability to develop a credit risk model, assess the impact of news releases on credit risk, and execute trading strategies accordingly to profit from mispricing opportunities.
Sales & Trader Case
The Sales & Trader Case challenges participants to put their critical thinking and analytical abilities to the test in an environment that requires them to evaluate the liquidity risk associated with different tender offers. Participants will be faced with multiple tender offers requiring participants to make rapid judgments on the profitability and subsequent execution of these offers. Profits can be generated by taking advantage of price premiums and discounts associated with the large tender offers compared to the market, and market-making opportunities.
	Interest Rate Case
The EIB Institute Interest Rate Case challenges traders’ understanding of bond pricing based on news and benchmark interest rates derived from 4 non-tradable EIB zero-coupon bonds. Traders have to price 3 tradable coupon bonds based on the benchmark rates and news. The news, which will be released throughout the case, may have an impact on the benchmark rates, and thus on the fair prices of the tradable coupon bonds. Traders should forecast the impact of the news on the benchmark rates and exploit any bond mispricing opportunities to generate profits.

CASE PACKAGE UPDATES
Pages 15 to 24. As announced on the practice session of the ENEL case that we had on Saturday August 13th, we have increased the contract size for all securities. All contract sizes will be 100 times greater than they were in the initial case brief. This change will not affect the dynamic of the case, it will only allow you to have greater absolute profits.

Page 24, “A penalty of $5,000/MWh will also be applied to all short positions of ELEC-day2 through ELEC-day5 at the end of days 2 through 5 respectively.” has been replaced with “A penalty of $20,000/contract will also be applied to all short positions of ELEC-day2 through ELEC-day5 at the end of days 2 through 5 respectively.”

Page 40, the formula was written as [=(1+2.00%) (52/52)-1] but it should be [=(1+2.00%)^(52/52)-1]
Page 41, the formula was written as [=(1+2.00%) (41/52)-1] but it should be [=(1+2.00%)^(41/52)-1]
(This was kindly pointed out by Franco Colasanti)

Simulated trading at RETC is structured around the Rotman Interactive Trader (RIT) platform. The Electronic Communications Network (ECN) setup by RIT allows students to input limit and market orders in order to trade equities, fixed income, and derivatives with one another.

A demo of the Rotman Interactive Trader is available for download. The software allows schools to connect remotely to the Toronto trading server (“flserver.rotman.utoronto.ca”) and practice.

Simply follow the instructions on this page to install and run the Rotman Interactive Trader. The Toronto trading server operates 24 hours a day 7 days a week.

Instructions

1. Download the Rotman Interactive Trader Client v2.0 here.
2. Run the Rotman Interactive Trader Client by double clicking on your desktop icon or by navigating through your start menu. The login dialogue box displays.
   
3. To login to server port 10000, you can type in any username and password and it will automatically create an account if it does not already exist. If you have forgotten your password or the username appears to be taken, simply choose a new username and password to create a new account.
4. You are now ready to trade.

Related download
The file below is required in order to ensure proper RTD functionality (real time data links between Excel and the RIT client).

• RIT RTD/API for Microsoft Excel 32-bit (msi)
• RIT RTD/API for Microsoft Excel 64-bit (msi)

For detailed instructions on how to install the RIT Client and the RTD Links, please download the RIT – Client and RTD Installation Instructions.
The syntax of the Excel RTD function is described here or at the bottom-right corner of the RIT Client display (click on the blue-marked “RTD” link).

Videos
In order to help users, some videos have been developed. Please see here.

The RIT software is currently being sold and used by over 40 institutions (universities, pension funds, and financial management firms) worldwide.

For more information about RIT, please see here.

From “Termini” Central Railway Station

Take a taxi outside the station. The journey takes approx. 10 mins and the fare is around 20 euro.

From “Fiumicino – Leonardo Da Vinci” Airport (FCO)

Take a taxi outside the airport. The journey takes approx. 40 mins. A taxi for up-to-6-people can be booked in advance for 55 euro (htm).

From “Ciampino” Airport (CIA)

Take a taxi outside the airport. The journey takes approx. 30 mins. A taxi for up-to-6-people can be booked in advance for 55 euro (htm).

 HOTEL VILLA DUSE – 4 stars

Via Alamanno Morelli, 1 | 00197 Rome | Italy
+39 06 8069 3239 | info@hotelvilladuse.com | www.hotelvilladuse.com

Walking distance to LUISS: 550 m, 8 mins.

 HOTEL DEGLI ARANCI – 4 stars

Via Barnaba Oriani, 11 | 00197 Rome | Italy
+39 06 807 0202 | info@hoteldegliaranci.com | www.hoteldegliaranci.com

Walking distance to LUISS: 900 m, 13 mins.

 POLO HOTEL ROMA – 4 stars

Piazza Bartolomeo Gastaldi, 4 | 00197 Rome | Italy
+39 06 322 1041 | info@polohotel.it | www.polohotel.it

Walking distance to LUISS: 1.3 km, 19 mins.

 RESIDENCE HOTEL PARIOLI – 4 stars

Via Giuseppe Mercalli, 26 | 00197 Rome | Italy
+39 06 9442 9100 | info@residencehotelparioli.com | www.residencehotelparioli.com

Walking distance to LUISS: 800 m, 11 mins.

The Gala Dinner will be held at the “Circolo Antico Tiro a Volo” (The Ancient Club for Clay Pigeon Shooting).

Located on the top of Parioli, within a late 19th century building, the club is a traditional meeting point for many social, cultural and sports events.

The 2016 RETC Gala Dinner will be prepared by the award-winning executive chefs Vito Tronnolone & Mezba Uddin Hamed. Buffet dinner: Menu, in Italian (pdf) and in English (pdf).

Saturday, August 27th, 2016

8:30 PM to Midnight
Dress Code: Smart Casual to Formal

CIRCOLO ANTICO TIRO A VOLO

Via Eugenio Vajna, 21 | 00197 Rome | Italy
+39 06 808 2367 | info@anticotiroavolo.it | www.anticotiroavolo.it

Walking distance from LUISS: 800 m, 11 mins.

Click here for the Scoring Document.
Click here for accessing the Scoring Portal.
Click here for the Social Outcry Results.
Click here for the Puzzle Contest Results.
Click here for the Final Results.

Emilio Barone – Welcome Address (pdf)
Maria Paola Satolli – Teams Presentation (ppsx)
Matteo Gatto & Luca Boggio – Teams Introduction (video)
Alessandro D’Atri – Prizes (ppsx)
Ylenia Franetti – Puzzle Contest (ppsx)
Vincenzo Marzetti & Aurora Villa – Who’s Who in RETC 2016 (ppsx)

Leslie Nielsen & Joe Grifasi (“Frank Drebbin & the dock worker”) – The Naked Gun – Maybe This’ll Help (video)
Marco Salerno – Tutorial (ppsx)

Marco Salerno – Tutorial (ppsx)

• Speeches & Address (video)
• Emma Marcegaglia (mp4)
• Massimo Egidi (mp4)
• Ferrari – video (mov)
• Sergio Marchionne (mp4, pdf)
• Q&A – Tudor Fedeles (mp4)
• Q&A – Andrei Florin Cretu (mp4)
• Q&A – Matteo Del Panta (mp4)
• Q&A – Nikita Strezhnev (mp4)
• Q&A – Elizavéta Lindström (mp4)
• Tom McCurdy (mp4, pdf)
• Valter Trevisani (mp4)
• Dario Scannapieco (mp4)
• Leonardo Zannella (mp4)

Marco Salerno – Concluding Note (pdf)

• Ken McGuffin – 2nd Annual Rotman European Trading Competition Hosted by University of Rome (htm)
• LUISS – Sergio Marchionne at the Rotman European Trading Competition 2016 (htm)
• EIB – Teams from the Czech Republic and Slovakia win EIB Institute case (htm)

• Sergio Marchionne at the Rotman European Trading Competition 2016 (htm)
• LUISS Guido Carli – LUISS wins the second edition of the Rotman European Trading Competition (htm)
• University of Warsaw – QF students on 2nd place in Rotman European Trading Competition (htm)
• Charles University in Prague- Success of IES students at the Rotman European Trading Competition in Rome (htm)
• EIB Institute – Teams from the Czech Republic and Slovakia win EIB Institute case at RETC 2016 (htm)
• Sofia University – Faculty of Economics represents Bulgaria at the Rotman European Trading Competition (htm)
• University of Zagreb – Students of Faculty of Economics achieved great success at RETC 2016 (htm)
• Aalto BIZ – Finance students represented Finland in the Rotman European Trading Competition (htm)
• EDHEC Business School – EDHEC and The Rotman European Trading Competition (htm)
• EBS Universität – Invitation to Second Rotman European Trading Competition (htm)
• University of Malta – SAI Represents Malta at Rotman European Trading Competition (htm)
• University of Economics in Bratislava – Significant achievement of NHF students at RETC 2016 (htm)

Pasquale Modica – Slideshow (htm)

Rotman European Trading Competition (htm)

“I would want to once again thank you guys for everything you have done for us. I cannot emphasize enough how well the event was conducted. Communication and schedule were really well managed, your staff is amazing, the extent to which you guys went to make RETC 2016 happen is more than impressive. We loved our time in LUISS and we are very happy to have been invited. Thank you!!! For me personally, the event was a huge motivation to continue doing what is really interesting for me. Thank you for that too. If you ever need any help with following events or whatsoever, I would be more than happy to offer my help. Also, if any of you or from LUISS University ever comes to Vilnius, please do not hesitate to contact me. I would be happy to show you the city.” Kamilė Varnelytė (Lithuania)
“The Maltese team has just arrived home. On behalf of the whole team, I’d just like to say thank you for this fantastic experience. We’d love to participate in future editions!” Steven Galea Pace (Malta)
“First of all let me thank you for the wonderful weekend we had at LUISS. It was a great experience for us despite the fact that we didn’t do very good in the main competition. I can say on behalf of our team that we are thankful and will remember to this event as one of the most well organised ones we have ever attended.” Levente Safrany (Hungary)
“Being a part of the RETC ’16 was one of the bigger adventures the four of us have had for a long time. Never in our private as well as professional lives have we ever attended an event that well-organized, with a personal touch, that has left all four of us back with a feeling, that this trip was an unforgettable adventure. A special thanks to Emilio, who is by far one of the most inspiring or-ganizers we have ever met. It was truly amazing how he learned all of our names, knew personal details about us after reading the resumes forwarded to him very thoroughly and last but not least, his dedication to this competition and to LUISS. As members of the Danish student club, FinanceLab, we have learned a lot about trading, that we will be able to use in our professional careers, but also learned that dedicated people, a personal experience and a truly successful event from the first minute we walked in, re-quires an enormous amount of work and some dedicated, inspiring people with a mindset and a personality that must be the dream of every organizer. Once again thanks, it has been an amazing experience, All the best.” Jakob, Espen, Thilde and Monika (Denmark)
“Many thanks to you and the whole organization team for inviting us and for making this event so special. We enjoyed everything and were really impressed with the excellent organization. Best regards.” Magdalena Ećimović (Croatia) 
“I write you on behalf of the Spanish team to thank and congratulate all the staff, volunteers and the LUISS University for organizing the RETC 2016. We had an amazing experience participating in this edition, and we appreciate your effort and support, especially given the difficult mobility situation of one of our team members. Additionally, we hope that if new editions of the RETC are orga-nized you don’t hesitate contacting us in this email, since we will keep collaborating with our school in the recruitment and training of a fully competitive team. Sincerely.” Álvaro Salazar Pérez (Spain) 
“Thank you for a fantastic week in Rome. RETC trading competition highly overcame our expectations, it was organized to the last detail and enriched us all with experiences for life. Special thanks to Prof. Emilio Barone who learned 116 names and CVs of 29 teams from Europe and gave us warm welcome and priceless advices. We are thankful to our sponsors, among others Sergio Mar-chionne, the CEO of Fiat Chrysler Automobiles (FCA) and chairman & CEO of Ferrari. Sergio held one of the most inspiring speeches I have ever heard and he shared a table with us at the final gala dinner. We all came out as winners and definitely want to partici-pate again!” Monika Petrocova (Denmark) 
“First of all I want to thank you for the opportunity to participate in the Rotman European Trading Competition with our Belgian team. The organization was flawless, the experience excellent.” Ward Reynaert (Belgium) 
“Thank you for the great time in Rome! Our team has really enjoyed the experience of RETC. I was impressed by organization and how everything was thought-through: competition, social events, transport, food, timing etc. In my opinion, RETC is not just a good educational experience, but also an event that gives young people an opportunity to network, share ideas and create new vision for the future. Thank you again!” Mariia Khodos (Poland)
“We greatly enjoyed the event so I think it will be a benefit for anyone who manages to participate.” Liana Aghabekyan (Luxembourg)