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DEPARTMENT OF MANAGEMENT
UNIVERSITY OF TORONTO MISSISSAUGA
Financial Market Trading
Course Outline - Winter 2021
Class Location & Time
Course Web Site
Thu, 09:00 AM - 12:00 PM
virtual and bookable via Calendly
This LKC FLC-lab-based course will provide a hands-on introduction to the functioning of security markets and the trading of
financial instruments. Students will learn how the market prices financial securities, how to use finance theory to develop trading
strategies, and how to identify and manage risks of trading strategies. Cases will cover various securities, such as fixed income
securities, equities, futures and options. Students will further learn how to deal with various kinds of risks, such as liquidity risk,
market risk, downside risk, crash risk, and credit risk. [36P]
Prerequisite: MGT330H5 and MGT231H5 and MGT232H5
Exclusion: MGFD60H3 or RSM434H1 (SSc)
Distribution Requirement: SSc
Students will learn how the market prices financial securities, how to use finance theory to develop trading strategies, and how to
identify and manage risks of trading strategies. Cases will cover various securities, such as fixed income securities, equities,
futures, and options. Students will further learn how to deal with various kinds of risks, such as liquidity risk, market risk, downside
risk, crash risk, and credit risk. The key objective of the course is that students learn how to coherently and systematically describe,
document, and implement a trading strategy; where applicable, students will implement these strategies as trading algorithms
using programming in VBA and/or Python (no prior knowledge is required).
During the term, you are expected to keep up with current events by reading at least one major newspaper (e.g. The Globe and
Mail) regularly; students should also subscribe and read the newsletter from Trader's Magazine and to monitor relevant Twitter
Textbooks and Other Materials
There is no required text. The course is case-based and it requires a thorough understanding of the underlying topics, most of which
were covered in MGT330/338/339. For background reading refer to your text from MGT330, (Investments, 8th edition, by Bodie,
Kane, Marcus, Perrakis, and Ryan, 2015, McGraw-Hill. ISBN-13: 978-0-07-133887-5.). You must watch the following movies:
"Wall Street" (the original, not the horrible 2009 version), "Boiler Room", "Margin Call", and "The Big Short". All of these are
available in the library on a short-term loan, on iTunes (for a fee), or on Netflix (subscription-based).
Assessment and Grading Policies
short tests on class content
Class participation, team contribution, and team member feedback, and
pre-class submitted questions
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Please be advised that requests to round grades up will not be accommodated and can be considered an academic offense. The
grade earned by a student is the mark that will be entered into ACORN without exception.
Requirements and Criteria
Course delivery: The course involves us going through a series of trading courses that you will be going through during class time.
There is no possibility to do this asynchronously and class attendance is mandatory. The class will involve everyone connecting
using Zoom. During the class you will be remote-controlling one of the computers in the FLC using Citrix Cloud. That way, you
can use the software installed in the lab and tackle the trading cases. More details will be on canvas.
In this online setting, you need an adequate tech setup to participate in the class. A phone or tablet won't work. You will need to
have access to a computer that can handle VPN remote connections. Most Macs or Windows machines will work, but Chromebooks
likely do not. You will need to be able to communicate with your classmates, the TA, and the instructor during class and it is
recommended that you have a working webcam. Ideally, you'd also have a large enough screen so you can see the trading software,
RIT, and Excel at the same time, because many cases will require you to navigate several software packages simultaneously. You
will likely need to work while sitting at a table (not on a sofa or armchair), and you will need to take notes. Lastly, your internet
connection will have to be strong enough to handle the VPN and Zoom traffic (in particular, I will ask you often to share your
screen with me).
We will send you more detailed instructions closer to the beginning of the term.
Although the TA will be available during class time, I hope you understand that I myself cannot and won't provide tech support
and give detailed tech advice - that's just way outside of my area of expertise.
Assessment is as follows.
The first assignment is due before the first class - you will need to set up your technology so that you can participate in the class.
Your submission will be a short screencast video.
There will be between 8 to 10 short quizzes that test your comprehension of the cases and the class discussions. These will be
posted on the day of the class, there is a 30-minute time limit (the expected completion time is 15 minutes), and you have until the
end of the day to tackle the quizzes. They will involve multiple-choice questions as well as very short written answers.
For the journal, you will demonstrate that you made a serious effort to follow the class discussion, that you are trying to develop a
systematic approach to the case, and that you have learned from errors. Therefore, your journal does not have to describe a
correct/perfect strategy --- it should reflect your best efforts. Grades for each journal submission are 0 (not submitted or very poor
quality) and 1 (meets expectations). There won't be extensive feedback. The maximum total grade that can be achieved for this
segment is 90%.
The assignments cover a range of topics. In some, you will work through exercises that prepare you for or test your understanding
of the cases. In others, you will demonstrate your understanding of a particular case, the solution, and the underlying material by
asking you to implement a particular trading strategy. Finally, you may be asked to collect data or other insights on trading-related
topics. The assignments are to be completed individually. Written assignments must be submitted electronically.
Case replay: Class time is often insufficient to absorb the details of a case. We will allow you to replay the cases on your own time
for the week following the presentation of the case --- replay will help you understand the case better. We post a schedule for the
re-playable case each week, and we will not accommodate you should you miss the scheduled re-play dates. If you
procrastinate, you forfeit the opportunity for further in-depth study. You are expected to replay five iterations per week, and you
will document your replay by submitting (a) data for your trades from the replay and (b) a very short (less than 1 page) description
of your strategy. Grades for each submission are 0 (not submitted or very poor quality) and 1 (meets expectations). There won't be
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Classroom Participation: A major part of the lecture time will be devoted to discussing the case and possible paths to approaching
and solving the problem involved. These classroom discussions require the active participation of all students. Furthermore, you
may be asked to discuss a case with one or more fellow students. I will determine the groups at random. It is expected that you
conduct yourself professionally when working in a team. The effort that you put in as a team will affect your ability to perform in
the cases, and it will affect your ability to contribute to the classroom discussions. The quality of your contributions to the
discussion will be important, but even a misconceived (and thus potentially wrong) approach to a case can benefit the discussion (as
long as your contribution is an earnest effort to correctly solve the case). Thus your willingness to contribute to the discussion forms
the basis for the evaluation of your class participation. At the end of the term, I will ask you for your own opinion on the quality of
your contributions to the classroom discussion; your own assessment will be taken under advisement. Your general conduct in the
team exercises will be assessed separately, and I ask your team members for their opinions. Again, these views are taken under
advisement, and I will particularly look for consistency. A realistic view will have a high chance to affect my judgment, whereas
unrealistic views will be discarded. You will be assessed in particular on the quality of the feedback that you provide for your peers.
Finally, for some classes I will post materials such as short videos to add to the cases and to provide background information. You
will need to watch these videos before the class, and such content will be announced and posted one week before the relevant class.
You will have to submit two questions about the material in the course's discussion section on Canvas the day before the class.
Conduct of Class
This course would normally take place in the LKC FLC-lab so as to use its state-of-the-art technology. We will do our best to
emulate the in-person, in-lab experience online, but you need to expect that there will be technical problems that may very
well frustrate you. Moreover, since we cannot see the setup and the possible problems that you may experience, we can help only
to an extent. Key to limiting your frustration is that you are pro-active in getting comfortable with the technology. This means that
you will need to make an effort to set up your system and that you take advantage of preparatory instructions, that you work
through cases repeatedly outside of class, and that you communicate with your instructor and the TA.
The course provides a hands-on introduction to the functioning of security markets and the trading of financial instruments using
the Rotman Interactive Trader simulation software. The course will cover around 5-6 topic areas with a total of around 10-12
trading cases. Each case will be discussed in detail in an interactive manner during class.
There will also be a class dedicated to introducing you to the necessary programming techniques. During class, you are asked to
develop a systematic trading strategy; to aid you in your learning, you will need to keep a lab journal, and you will have to submit
your journal entry (about 1 page, in bullet points) at the end of each lecture. At the end of the term, you will be asked to comment
on your own participation. I will take these comments under advisement - the assigned grade will be determined solely by me.
Zoom: You need to register for a UTM Zoom account using your UTORid and password. (Web Portal Login:
https://utoronto.zoom.us) I will set up Zoom sessions such that only authenticated users can join meetings.
This course, but not your participation, will be recorded on video and will be available to students in the course for viewing
remotely and after each session. Course videos and materials belong to your instructor, the University, and/or other sources
depending on the specific facts of each situation, and are protected by copyright. In this course, you are permitted to download
session videos and materials for your own academic use, but you should not copy, share, or use them for any other purpose without
the explicit permission of the instructor. For questions about recording and use of videos in which you appear please contact your
Please be advised that the intellectual property rights in the material referred to on this syllabus [and posted on the course site] may
belong to the course instructor or other persons. You are not authorized to reproduce or distribute such material, in any form or
medium, without the prior consent of the intellectual property owner. Violation of intellectual property rights may be a violation of
the law and University of Toronto policies and may entail significant repercussions for the person found to have engaged in such
act. If you have any questions regarding your right to use the material in a manner other than as set forth in the syllabus, please
speak to your instructor.
Office hours: will be conducted virtually. You will be able to book meetings with me using Calendly. I will try to offer time slots
that are suitable also for students who are in different time zones.
Time Zones: I kindly request that students who are located in a different time zone alert me early to possible scheduling concerns.
Procedures and Rules
UPDATED PETITION PROCESS FOR WINTER 2021 COURSES:
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You must inform your professor via email as soon as possible (at least 24 hours) and submit a Petition to the Department of
Management of any missed test(s) and assignment(s) due to any circumstances that prevent you from completing a test or
assignment on time. . At this time, we are not requesting medical documentation for sickness related absences. Please use the
Absence Declaration tool on ACORN found in the Profile and Settings menu to formally declare your absence from academic
For non-medical absences or request for extension of time: You must submit an online Petition for Academic Accommodation as
soon as possible (at least 24 hours) . Supporting documentation should be emailed to email@example.com within 7 days.
Missed Test(s) and Assignment(s):
Make-up Test Procedures (Default Procedure in the Event No Other Make-up Test Procedures Are Provided in this Course
As per the instructions above, ill students must contact the instructor via email within 24 hours so that arrangements can be made.
For non-medical requests, the students must contact the professor via email within 24 hours and submit a Petition for Academic
Accommodation to the Management Department and declare their absence via ACORN. No make-up exam will be available to
those missing a midterm, quiz or/and test. Students missing a midterm exam will have the midterm weight added to the final exam
and they must write a cumulative final exam. Students missing the final exam will write an alternate deferred exam during the
deferred exam period determined by the Office of The Registrar. For courses without a final exam, students that miss the
midterm/test/quiz may have a cumulative end of term test and/or final assignment, as determined by the course instructor.
Re-marking: Every effort will be made to ensure that student term test grades are accurate, fair, and consistent for all students. If
you have a legitimate reason to believe that your mark(s) are incorrect due to an error, you can request a review of your term test.
All questions about term test, marks and requests to have tests remarked must be submitted to the TA Coordinator/Instructor.
When making this request, students should consider:
1. Requests should be made within one week of marks being posted.
2. Requests should be made only in legitimate cases of grading errors and not because the student is just hoping to have their
3. Term tests that are remarked will be remarked in their entirety by the Course Coordinator and the mark awarded may
increase, decrease, or remain the same.
Missed Test(s) and Assignment(s):
The quizzes and journal are due at the end of day of the class to which they pertain. I will discard each student's worst quiz grade
and I will allow students to skip one journal submission.
If a test or assignment is missed and the student does not provide acceptable documentation within 7 days validating the
explanation for absence for non-medical petitions and does not contact the professor within 24 hours in addition to submitting an
online petition to the Management Department or if the student does not contact the professor within 24 hours in addition to
declaring their absence via ACORN for medical petitions, a grade of zero will be assigned.
If missed tests will be reweighted to the final exam, the maximum weight of the final cannot exceed the limit outlined in the
University of Toronto Mississauga Academic Calendar (70% for first year courses and 80% for second, third, and fourth year
courses). If the exam will be greater than the allowable weight, a make-up assignment or test will be assigned by the instructor. If a
make-up is necessary, instructors will inform the student in writing to their utoronto email account. If no response is received within
3 business days, the make-up portion will receive a grade of zero.
For every 24 hours of late submission, your assignment grade is reduced by 5 points until it is zero.
Medical notes are accepted but they must specify that you have been incapacitated for at least the last 48 hours before the deadline;
moreover, once you realize that you are incapacitated, you must contact me by email immediately (i.e., not after but before the
deadline). I strongly urge you to get in touch with me as soon as you notice that you will face a challenge to complete your work on
time. I will then do my best to work with you to remedy the situation.
Academic integrity is essential to the pursuit of learning and scholarship in a university, and to ensuring that a degree from the
University of Toronto Mississauga is a strong signal of each student’s individual academic achievement. As a result, UTM treats
cases of cheating and plagiarism very seriously.
The University of Toronto’s Code of Behaviour on Academic Matters outlines behaviours that constitute academic dishonesty and
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the process for addressing academic offences. Potential offences include, but are not limited to:
In papers and assignments:
Using someone else’s ideas or words without appropriate acknowledgement.
Submitting your own work in more than one course without the permission of the instructor.
Making up sources or facts.
Obtaining or providing unauthorized assistance on any assignment.
On tests and exams:
1. Using or possessing unauthorized aids.
2. Looking at someone else's answers during an exam or test.
3. Misrepresenting your identity.
In academic work:
1. Falsifying institutional documents or grades.
2. Falsifying or altering any documentation required, including (but not limited to) doctor's notes.
Students should note that copying, plagiarizing, or other forms of academic misconduct will not be tolerated. Any student caught
engaging in such activities will be subject to academic discipline ranging from a mark of zero on the assignment, test or
examination to dismissal from the university as outlined in the academic handbook. Any student abetting or otherwise assisting in
such misconduct will also be subject to academic penalties.
Normally, students will be required to submit their course essays to Turnitin.com for a review of textual similarity and detection of
possible plagiarism. In doing so, students will allow their essays to be included as source documents in the Turnitin.com reference
database, where they will be used solely for the purpose of detecting plagiarism. The terms that apply to the ...