Case study for At the T.Rowe Price Trading Desk”
Questions for the T. Rowe Price Trading Desk Case
1. What were all of the factors that made the sale of Avantek stock a difficult order to execute?
2. How does offering to pair the sale of Avantek with a purchase of Tandem shares help T. Rowe? Why might the pairing the Tandem trade with the Avantek trade be appealing to Goldman?
3. Would you accept the terms offered by Goldman? Why or why not?
4. Did Greg make any clear mistakes in shopping this sell order in Avantek?
5. How would you estimate T. Roweas trading costs for these potential trades? While I know the data is not perfect, use what you can to try to estimate some trading costs.
6. The T. Rowe trades with Goldman are in red type. Can you infer whether Goldman was involved in any other specific trades during the day? Given the other quotes in the case and the trade prices listed below that occurred just before and then after the T. Rowe trades, how well did Goldman do on these two trades?
7. Given our current market structure/environment/technology, how might Greg approach filling these orders today?