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FN285 Assignment: Discuss recent developments in financial markets

FN285 Assignment: Discuss recent developments in financial markets

FN285 Assignment

Rob Hayward

April 5, 2020

Introduction

This is an individual assignment that requires you to discuss recent developments in financial markets and to show that you can use R software.

The assignment will show that you are able to:

• understand how electronic order markets work and why they have become dominant

• find and download data

• import data into R, manipulate, present and comment on the code used to do that

Requirements

Your report should include the following:

• a explanation of the way that an electronic limit order market works;

• a discussion of electronic order books dominance in financial market transactions

• data that you have downloaded from an external source

• code that will import the data into R, calculate key statistics and plot one or more variables

The report should be 1250 words and should be accompanied by an R script that will reproduce the research. The deadline for the assignment is 5 May 2020.

Marking Criteria for FN285 Assignment

Criterion Weight Fail Pass Merit Distinction Explanation of the working of the electronic order markets

20% No discussion of electronic order markets.

Basic but limited dis- cussion of electronic order markets. There may be mistakes or omissions.

Good understanding of the way that elec- tronic order markets work.

Excellent under- standing of the working of electronic order markets and some reflection on the way that real mar- kets will differ from these simulations.

Discussion of the reasons for electronic order dominance

20% There is no discus- sion about the evolu- tion of financial mar- kets.

There is a very basic discussion of finan- cial market history.

The way that financial markets have evolved is clearly explained.

There is critical anal- ysis of the evolution of financial markets and reasons for these changes.

Download data 10% There is no data There is only one se- ries

You have two or more series

You have two or more series

Import data into R. Present key statistics and plot one or more variables

30% No use of R. Very simple presen- tation with lack of chart or statistics.

Effective importing, statistical analysis and presentation of data.

Data is imported into R, statistics that are calculated are clear and relevant. Plots are clear and well presented.

R code 20% No code. Basic code with no comments.

Good, clear code with appropriate comments.

Very well presented code. Clear com- ments and instruc- tions for re-use.

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