Real-time intelligent program stock trading

  • Authors:

  • Kam Fui Lau

  • Affiliations:

  • Armstrong Atlantic State University, Savannah, GA

  • Venue:
  • Proceedings of the 43rd annual Southeast regional conference - Volume 2
  • Year:
  • 2005

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Abstract

An intelligent program stock trading system is a system that will constantly monitor the price differential between the stock index futures and the underlying basket of stocks and to automatically initialize, execute and complete a transaction when the price differential between the two markets are out of synchronization. Traditionally, when there is a large price differential, index arbitrageurs will enter the market to buy the side that is price lower and sell the other side that is priced higher to make a profit. This work is to apply real-time system research in designing a new type of intelligent program stock trading system to automate this process. The proposed intelligent program stock system is required to handle large amounts of data with time constraints imposed on the data and on the transactions that access the data. Traditional database technology, however, is not designed to manage perishable (time-constrained) data of these financial applications, such as "current" stock prices and trading volumes in program stock trading transactions. However, real-time systems are designed to meet deadlines in transactions scheduling. In this paper, we will discuss using real-time object-oriented database system, the quantifying technique in index arbitrage (a form of program stock trading) transaction scheduling. We will also discuss using several other real-time technologies in building program stock trading systems.