Market Discussions

Thank you very much. This makes me very happy :)

Please reserve 10b.

reserve 10b for all 4 areas

Update: the project is getting final

In these days I have worked pretty hard on finding viable compromises that could work in the short time frame the markets gave me. Follows a blurb that I feel I need to write, it will impact on your investment portfolio a lot.

Here are the specifications:

1) Do it fast.
2) Give a market to those who want a market.
3) Give a simple investment to those who just want to dump some ISK and forget about it and just get a monthly wallet blink.
4) Give everyone an experience on what a quasi-realistic finance instrument looks like.

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1) Do it fast

Why? Because I need a momentum for this thing to take off and one of the few times it's sort of predictable to get such a momentum, it is during the months before Christmas.

However, this imposes a very, very heavy toll. I cannot code what's needed to implement a full infrastructure. I need basically to write an automated teller system, an automated EvE API reader to fetch the current funds assets and compute the updated NAV (a fundamental parameter for funds, it decides shares price = NAV / outstanding shares. Then I need to code a personal stock portfolio, an orders management and matching system and much more. I dare say it'll take several man weeks - if I had nothing else in RL to do.

So I have to setup a temporary solution and do it half manually. I created some Excel sheets that will replace the exchange and order forms..

The sheets are available as Google Docs for review at this location.

I will expand later about what the hell are all those "pages", since they will make more sense once I cover the next points.


2) Give a market to those who want a market.

As mentioned in previous posts, there will exist 4 close ended funds: Minerals, Ices, T2 materials and PI materials. Those are baskets of multiple kinds of items each. Therefore they are not indexes, i.e. they won't track any particular EvE market.

I urge to re-read the links I posted in previous posts so you understand what a fund is and which fund does what.

These 4 funds are close ended and thus behave like stocks. An IPO will be published and a counted number of shares will be issued. I.e. if I find interest for 50B I will issue 50K shares.

Interested investors, included those who want to delegate me to do their bidding, MUST specify how much ISK they want to invest on each of those 4 funds. I.e. it's not enough to tell "I want to invest 10B" because I don't know if you want to put 2.5B per fund or 5B on 2 funds and zero on the others and so on.

Once the shares will be distributed, the primary market phase is over and you'll receive your order (tracking) number, in fact you'll be long on your shares (you just bought them!) at 1M per share.

At this point, you will be able to read how the market is and you'll be able to buy / sell etc. like on RL markets.
RL markets are almost like EvE, except you don't pay a single nickel to place and modify buy / sell orders (you can also just directly buy / sell like in EvE's "simple" market order window).
What you pay in RL markets are exchange fees and - possibly - fund fees. Here is a quite informative document explaining them.

Everything is crystal clear and transparent on the Excel sheet I linked above. You'll notice some funds are almost free (except a little fee to prevent mad by / sale cycles - this is also done in RL), while others have different costs. Why different? Because there's unique intrinsic risk and illiquidity in some markets. I.e. it's harder to liquidate some T2 materials to make cash for a possible large withdrawal and those materials also have higher volatility to manage.

Those investing in the closed funds will earn ISK:

- by buying low and selling high.
- by short selling high and buying low. Notice short selling will be implemented once I find a stock borrower. A market maker investor could do that and earn interest just for lending some stock for some days.
- by doing nothing. Yes. Do nothing and just wait for the monthly wallet blink, like a regular IPO / bond.

Remember, in order to "get out" you'll need to sell the stock. If you can't wait the fund issuer (VAHFT - Vahrokh Financial Technology => my finance branch) will redeem the stock at 90% of its current value, no question asked, as long as there's enough liquidity for that (i.e. don't pretend to insta-liquidate 30B worth of shares, it won't happen).

Easy for me!

1 billion on t2, 500 millions on minerals, 250 on each ice and moon materials.

Is that specific enough? Unfortunately I have no idea if I'll be able to properly invest it all myself.

Please specify the exact basket.
I need to know before the IPO is launched (see next post) else this delegation request cannot be executed.

I would be willing to invest 400m in the mineral fund. If that is not possible then that money will go to Easy Fund please.

@Elegbara please re-post your offer when the reservations will start. There will be a dedicated thread for that.

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Some random addendums


Here is how the securities charts could look like:

Picture

Since Google Docs does not support Excel charts I have to figure out a no nonsense way to make them available in other ways.

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Market orders vs Stop orders

This jargon is the RL finance way to call the two things you do all the time in EvE already.

A market order is nothing more than dumping stuff to buy orders or directly buying from sell orders. It's basically the "Simple" EvE trading window. Like EvE, it's immediate execution at current price. That is, even if you specify a price in the order form, it'll be ignored and you'll be given the best current market price.
Notice how all the ESYFND open ended fund sales are always market orders, you can see it by looking at the orders book. In fact open ended funds only involve direct taking or redeeming of shares.

Stop orders, instead, are the equivalent of the "Advanced" EvE trading window, where you may specify the price, duration etc.

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Orders number

One very very important detail: like in RL finance, your orders will be tracked with a number / code.

When you create a new order (buy / sell etc) you will get this code sent to you. Now, you'll have to paste that code to subsequent requests to move / change / delete that order.


The process is quite easy, but I am going to explain it step by step in order to make it as easy as possible.

First of all please open this screenshot and keep it handy so you can see the sample numbers in the right places. Download the Excel stuff from the Google docs link I posted earlier.

Imagine you want to:

- setup a sell order for 12 MINBSK shares. You want to 0.01 ISK the current ask price like you do in EvE.
Since you are in the MINBSK Excel sheet already, all you have to do is to look the DOM (orders book) to the right. The lowest ask price is 1,216,000.00.

So in the lower left orders pane you enter the following data (left to right):

MINBSK. This is already pre-filled in, since you are already in the MINBSK sheet.
Operation = SELL
Order type = STOP
Price = 1,215,999.99 (0.01 ISK below the lowest ask price).
Quantity = 12
Only Expiration available at the moment is "forever", so leave GTC (Good Till Cancelled).
Leave 0 as order id as you are creating a new order. You will receive the created order ID from the exchange.

Now you can copy these data and paste them into an EvE Mail and send it to Vemex Monica for FIFO processing.

Imagine you also wanted to redeem 3 ESYFND shares. You can switch to the ESYFND spreadsheet tab or just fill in the next row below the ICEBSK order. This way you can just send one EvE-Mail for multiple orders.

Now, ESYFND is the open ended fund so you can only dump to market (effectively redeeming the shares at their intrinsic price minus the listed fees of 1 + 1 percent). To do so, you enter:

Operation = SELL
Order type = MARKET (if you enter STOP, it'll be ignored for the open ended fund)
Price = leave the default (1) since market orders are always matched with the best current price.
Quantity = 3
Order ID = 0. You will receive an order ID for your own book keeping but by the time you receive it, your shares have been processed already.


Finally, imagine you also want to change a 10 shares ICEBSK order you set up yesterday. Yesterday you sent an order for 10 shares and the exchange sent you the code 4533322. To do so, you enter:

Operation = CHANGE. If you use CANCEL, the order will be just cancelled and the shares returned for free.
Order type = irrelevant. It will stay what you set it up for yesterday, you are just relisting (i.e.because someone 0.01 ISKed you).
Price = new price you want the shares to be relisted at.
Quantity = irrelevant. The whole order is moved anyway, it won't split.
Order ID = 4533322 (the number you got sent back from the exchange yesterday).


Nota Bene

Like RL and unlike EvE, setting up, moving and cancelling orders is completely free.

Only the actual trades are charged.

I know, I was just showing my interest in your project ^^
Also would anyone mind being my delagate for the reservation, as it's quite late where I live, so I don't think I'll be able to post. For anyone interested in doing it, 400m for the mineral fund, as a market maker :D

Of course, this sounds immensely stressful. If you manage to pull this off, you should bloody well be proud of it.