Automated Market Making

Catalyst Equities is a proprietary day trading firm, which means that they trade stocks with financing arranged by a third party. Currently, trades are made independently by members of the team with some dialogue over projections and decision criteria. In the future, partners want to expand their business to include automated trading, which they have past experience with. By some estimates, automated trading accounts for more than 50% of all trades on the New York Stock Exchange (NYSE); however, there are still opportunities to create profitable trading programs that leverage the sophisticated access that Catalyst has to major stock markets. This project is an attempt to exploit the features and signals of certain stocks listed on the NYSE to create arbitrage profits.

Faculty Supervisor:

Dr. Ivar Ekeland

Student:

Peter Bell

Partner:

Catalyst Equities

Discipline:

Mathematics

Sector:

Finance, insurance and business

University:

University of British Columbia