The Rotman International Trading Competition (RITC) is a one-of-a-kind event hosted annually at the Rotman School of Management, University of Toronto, located in one of North America’s largest financial centres.
This year’s team consisted of six of our highest-performing finance students Ben Fudali, Jack Lau, Dmitry Shorikov, Shiza Shahzad, Ben Laulan Souilhac, Maxime Gosselin and was coached by Tarek Kassem, the Manager of the Financial Research and Learning Lab. The Telfer School team finished 12th overall. Our BCom students competed among Masters and PhD students, as the University of Ottawa was among the few schools to send undergraduate students. There were schools represented from 4 out of 5 continents with teams from Australia, Italy, China, Mexico, Ireland and Iceland.
RITC, now in its 15th anniversary, is the world’s largest simulated market challenge, bringing together teams of students and their faculty representing over 50 top universities across the world. Unlike remote electronic trading competitions, RITC offers students, faculty, and sponsors the invaluable experience of engaging in a stimulating face-to-face interaction, encouraged by our unique conference format.
Here are the highlights:
1st Overall - S&P Global Quantitative Outcry case
The S&P Global Quantitative Outcry case challenges participants to apply their understanding of macroeconomics to determine the effect of news releases on the world economy as captured by the Rotman Index (“RT100”). The RT100 Index is a composite index reflective of global political, economic, and market conditions. Participants will be required to interpret and react to both quantitative and qualitative news releases based on their analysis of the news’ impact on the index by trading futures.
Top 10 – Fixed Income Case
The Fixed Income Case will challenge participants to manage a bond portfolio and generate profits by taking advantage of any mispricing of bonds due to changes in the zero-coupon rates and/or credit spreads. This will require participants to accurately understand various types of news and evaluate their impact on the yield curve, credit ratings, and bond prices. Participants will then use the risk-free zero-coupon rates to price risk-free treasury bonds. They will also use the yield curve and the Altman Z-Score model to forecast potential changes to companies’ credit rating to price the risky corporate bonds.
Top 10 – BP Commodities Case
The BP Commodities Case challenges the ability of participants to trade in a closed supply and demand market for crude oil. Natural crude oil 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 participant’s ability to understand sophisticated market dynamics and optimally perform his/her role, while stressing teamwork and communication. The case will involve crude oil production, refinement, storage, as well as the sale of its synthesized physical products.
