Infrastructure, Software & Datafeeds
The Trading Room is a state-of-the-art teaching and research center located in the Smith Academic Technology Center at Bentley University (Suite 226). As the centerpiece of the university's Hughey Center for Financial Services, the Trading Room provides firsthand exposure to financial concepts such as trading, portfolio construction, corporate finance concepts and risk management.
The 5000 square-foot facility comprises two parts: the main trading floor and the adjacent business suite, which is used as an overflow facility. In aggregate, the Trading Room is equipped with 60 Hewlett Packard XW4600 workstations — each with a dual 19" HP flat panel display — and twenty four Bloomberg terminals. Each workstation is equipped with real-time data and leading financial technologies.
The Trading Room also features 16 NEC 42" LCD screens and three ticker tapes displaying market information, news headlines and real-time data. An Enterasys Matrix switch provides network connectivity to the floor, and 10 IBM servers provide file and application service, as well as R&D support.
Software And Datafeeds
Through the Trading Room, the Hughey Center for Financial Services (HCFS) provides students with access to an unrivaled collection of datafeeds and analytical tools valued at more than $3.5 million in annual licensing fees. This investment positions the HCFS as one of the most powerful investment research centers in the country. Provided below is a description of each application. For information on workshops, mini classes and tutorials provided for each of the applications, please visit our resources page.
Bloomberg is a comprehensive, online service for global financial information that includes: Company information (stock performance, news, balance sheets, historical data, officers, evaluations, etc.); information on U.S. and foreign markets; extensive sets of data and statistics on industries, companies, etc.; numerous options for analyzing and graphing data; country monitors, economic calendars and currency news; and news services (general, markets, economics, special reports, etc.).
Bloomberg has one of the most extensive databases of information available in the financial world. Bloomberg’s built-in screening, searching, and analysis tools allow for extensive data retrieval, interpretation, and manipulation. Information on every financial market, instrument, and variable in the world is at your fingertips. Bloomberg’s international information coverage is also wide-ranging, with news and economic information on every country available both real-time and historically. Advanced bond screening, custom option monitoring, portfolio tracking, Excel data exportation, technical analysis, FX cross-rates, industry tracking, global economic statistics, relative company analysis; these are simply a handful of the hundreds of the integrated Bloomberg functions designed to allow the end user near infinite information access and ability.
Capital IQ Platform is a web and Excel-based research product that combines deep information on companies, markets, and people worldwide with robust tools for fundamental analysis, idea generation, and workflow management. Capital IQ Platform is deployed at over 2,700 leading investment banks, fund managers, private capital firms, and corporations worldwide.
Palisade Statistical Suite extends the forecasting capability of spreadsheet models created in MS Excel and provides the information needed to make accurate, efficient and confident risk management decisions. The program can create projected sales figures, expense data or other finnacial statements items based on historical data. Using Monte Carlo simulation, Palisade displays a range of possible outcomes and the likelihood of achieving each of them. The program can also be interfaced with RISKOptimizer to conduct linear and nonlinear optimizations. Optimization is the process of finding the best, or optimal, solution for your model.
DataStream Advance is a reporting and charting interface designed for use with DataStream’s internationally renowned historical financial and economic databases. It supplies stock market, indices, fundamentals and economics data from around the world with historical depth spanning more than 30 years. DataStream’s graphical user interface enables retrieval and display of reports, charts, and data, and allows for the custom integration of requested information over a variety of reporting formats.
FactSet is a complete source for financial information. It combines more than 200 databases from industry-leading suppliers and powerful analytical tools into a single information system. FactSet has more thn 50 applications that allow users to analyze companies, portfolios, markets, and economies seamlessly. The program's comprehensive platform enables users to customize data to the smallest degree and to present data in a infinite variety of formats, including customized reports and charts. Some of the tools included are: Company Analytics, Real-Time Market Data, Market Analysis, Ownership Analytics, Deal / M&A Analysis, Hosted Data Storage, Portfolio Analysis, Risk Analysis, Fixed Income Analysis, Screening Tools, and Spreadsheet Models.
FactSet integrates real-time global news and quotes into the FactSet desktop application to provide complete analytic, research and market data to the user. The program allows the user to easily access real-time, fundamental and historical data from a single platform. With virtually limitless customization, you can tailor your screen to fit your specific needs. Easily change the look and feel of the screen displays, customize your watch lists and quote displays, filter news stories and access your portfolio holdings in real time.
Portfolio Analysis: Using portfolio analysis the user is able to investigate sources of over and under performance, view the current valuation and recent trading history of portfolio constituents, and compare portfolio weights to any available benchmark (including the S&P, Russell and MSCI indices). Using dynamic reports that incorporate your portfolio, along with data on hundreds of global indices, you can quickly assess the factor that make your portfoio move and illustrate how your investment decisions affect portfolio performance.
Style, Performance and Risk (SPAR): FactSet's return-based portfolio analysis applications provides flexible reports and charts that can be used to analyze the style, performance and risk of selected portfolios, benchmarks and competitor funds. With SPAR, you can dynamically create a presentation of a portfolio's style, performance, risk and peer group using any combination of reports, charts and split chart views. Incorporate statistical formulas like regression, market capture and semi-variance to gauge the absolute risk of selected portfolios and returns as they relate to the amount of risk assumed. Once these charts are created SPAR lets you analyze your portfolio's returns against more than 20,000 equity and fixed income benchmarks along with competitor mutual funds and institutional / separate accounts.
Financial Trading System (FTS) is a web-based software package that allows professors and Trading Room staff to simulate markets using pre-designed cases, teaching modules and other supporting material. With this system, students have the opportunity to manage their own real-time position, act as market traders and apply trading theories. Through the use of FTS students learn important concepts from personal trading experiences by viewing the problem from both a trading and trading support perspective. Cases that are used cover Fixed Income markets, Equity markets, Derivative markets as well as Swaps markets.
Matlab (Matrix Laboratory) is an interactive software system for numerical computations and graphics. It is especially designed for matrix computations for the use of solving linear equations, computing eigenvalues and eigenvectors as well as factoring matrices. Additional from that, the software has a variety of graphical capabilities
Mergent Horizon is an online database that allows users to access up-to-date company information including stock prices, financials, key competitors, dependent suppliers and key customers. The application identifies the specific lines of business that each target firm operates and decomposes the revenues generated by each functional division. Mergent identifies the best fit sectors and most true competitors by identifying the largest revenue producing division and matching it to pure play proxy firms and to other competitors that generate revenues by selling similar products and services. When listing competitors, Mergent categorizes the firms as focused or pure-play competitors based on the similarities of the division responsible for generating the revenues. For companies competing in the healthcare and pharmaceuticals sectors, Mergent offers detailed analysis of the company's pipeline, the stage of FDA approval, side effects of the treatment, afflictions the drug is designed to treat, and compares specific drugs to others designed to treat similar afflictions. Mergent also allows the user to create customized, user defined indexes of focused or pure-play companies. The software's screening tool allows users to screen the universe for companies meeting user defined criteria including, momentum and fundamental data, revenue by geography, or screen by FDA approval status and product, symptom, and side effect to narrow the selected field. The application also has charting capabilities, SEC filings, custom reports, price data, and trade names for every company in their database.
Morningstar Direct provides students with a basic understanding of the functionality of the software. Morningstar provides detailed information on more than 20,000 mutual funds, equities, ETFs, and hedge funds, including historical data (monthly, quarterly and annual), fund composition, portfolio screening, risk adjusted star-ratings, investment style boxes, and analyst reviews and commentaries. Morningstar also offers the ability to rank and compare funds, perform advanced analysis for research purposes, and construct and analyze mutual fund portfolios.
S & P Compustat provides a complete set of high-quality fundamental and market data. The program provides a transparency to today’s markets with reliable information, deep history and extensive company coverage — giving users the right tools to approach the market with confidence. Some of the data that is available through this software includes company credit ratings, equity research, risk solutions, evaluations and much more.
Thomson One Analytics is a leading global research network that money managers and brokers worldwide rely on for real-time, equity and fixed income research, corporate news, and analyst coverage. Its network enables end users to track particular industries, equities, and fixed-income offerings and their correlated earnings estimates, financial outlooks, and consensus recommendations provided by Wall Street analysts. Users can also create portfolios of both local and international equities to monitor the analytical fluctuations underlying those securities.
Option Tutor is an advanced derivative pricing and analysis tool. By inputting a series of market and derivative variables, users can accurately price the value of option contracts, as well as compute the underlying constituents that affect an option's price (delta, gamma, vega, etc.). More advanced functions allow the user to compute the prices and payoff streams of a variety of multiple-put/call option strategies.
The functionality of Bond Tutor is similar to that of the Option Tutor software. Its primary function allows users to input data on a bond or series of bonds and calculate both present and future bond values and/or the values of underlying cash flows. By incorporating the use of Bond Tutor during simulated bond trading (using the FAST software), users can accurately compute the price of the bonds involved, and consequently trade them most efficiently.
CAPM Tutor goes the next step beyond both Bond and Option tutor by allowing the end user to take a modern approach to managing a portfolio of stocks and mutual funds. CAPM Tutor is a unique investment tool that reflects these broad trends in investment analysis. CAPM Tutor instructs users on the principle of the Capital Asses Pricing Model (CAPM) and the importance of portfolio diversification in real-world market scenarios
William O'Neil Direct Access (WONDA) is an on-line institutional investment data research tool incorporating state-of-the-art screening capability on over 3,800 data items. Designed by investment professionals with a culmination of over 35 years of hands-on experience, WONDA can be easily adapted to any investment style. The system combines company fundamentals, earnings estimates, industry group statistics, corporate data, and many of the most powerful technical tools available in the industry including its own proprietary ratings.
Worldscope Global database provides the user with access to current, comprehensive and comparative information on securities in worldwide developed and emerging markets. In conjunction with FactSet’s powerful analytical tools, the user is able to obtain information needed for global a investment perspective. Worldscope covers more than 38,000 companies, in 53 countries and 186 industries. The user has the ability to evaluate global corporations by reviewing financial statements and interim data as well as screen for companies by such criteria as; country, sector or industry. When comparing companies from different countries with different reporting practices, Worldscope can easily and accurately convert date to any other currency.