RITC 2012 Case Package - Rotman International Trading ...
RITC 2012 Case Package - Rotman International Trading ...
RITC 2012 Case Package - Rotman International Trading ...
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BP Canada Commodities <strong>Case</strong><br />
Overview<br />
The BP Canada Commodities case challenges traders’ ability to respond to the highly dynamic world of<br />
commodity trading. Primarily, traders will buy and sell crude oil and related products in response to their<br />
analysis of various news releases affecting the price of oil. In addition, traders will be challenged to take<br />
advantage of arbitrage opportunities occurring in the spot and futures markets as well as across different<br />
locations and crude oil products. Lastly, traders will learn about the physical requirements to trade physical<br />
product, such as storage, pipeline (transportation) and refinery costs.<br />
Description<br />
The BP Canada Commodities case will consist of 2 heats with 2 team members competing for the entire heat.<br />
Each heat will consist of three 20-minute sub-heats to be independently traded and representing two<br />
months, or 40 trading days, of calendar time. Each sub-heat will involve 7 tradable securities and 6 assets.<br />
<strong>Trading</strong> from Excel using the <strong>Rotman</strong> API will be disabled. Real time data (RTD) links will be enabled.<br />
Parameter Value<br />
Number of trading sub-heats 3<br />
<strong>Trading</strong> time per sub-heat 1200 seconds (20 minutes)<br />
Calendar time per sub-heat 2 months<br />
Number of periods per sub-heat 2<br />
<strong>Trading</strong> time per period 600 seconds (10 minutes)<br />
Calendar time per period 1 month<br />
Max order size 30 contracts<br />
Mark-to-market frequency Daily (every 30 seconds)<br />
Market Dynamics<br />
Traders will be able to trade the following seven securities and utilize the following 6 assets as listed below.<br />
Securities<br />
Securities Description Contract Size Shortable<br />
CL Crude oil spot (in Cushing) 1,000 Barrels No<br />
CL-AK Crude oil in Alaska 1,000 Barrels No<br />
CL-NYC Crude oil in New York City 1,000 Barrels No<br />
CL-1F Month 1 futures contract for CL 1,000 Barrels Yes<br />
CL-2F Month 2 futures contract for CL 1,000 Barrels Yes<br />
HO Heating Oil 42,000 Gallons No<br />
RB RBOB Gasoline 42,000 Gallons No<br />
Traders will be able to utilize the following assets which are required for storing, moving, or refining physical<br />
crude product.<br />
<strong>Rotman</strong> <strong>International</strong> <strong>Trading</strong> Competition <strong>2012</strong><br />
© Financial Research and <strong>Trading</strong> Lab, <strong>Rotman</strong> School of Management, U of T<br />
18<br />
BP BP Canada Canada Commodities Commodities <strong>Case</strong> <strong>Case</strong>
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