Banking DLC poll - securities & finance

[Childishcfo]

Related to previous thread

[saferain]

I think these contents can be made into new DLC。
If you can, you write a detailed content to the new DLC (named: Securities and Financial DLC), I will help you vote.

[buells]

I think you could possibly add short selling, but frankly I think most of this other stuff is kind of over the top. To calculate fair option prices, for example, the game engine would be hugely taxed. I think we need to be a little bit realistic about what is possible and would be interesting to a broad range of players.

[Childishcfo]

I think these contents can be made into new DLC。
If you can, you write a detailed content to the new DLC (named: Securities and Financial DLC), I will help you vote.

Alright, lets see (lets start with something simple):

Short selling
- Invovles: Underlying Security, Sell side, Buy side, Ready to borrow / loan (securities) side, Intermediary (broker)

Idea 1: Already i see AI strategy where if AI holds stock ABC and interest rates are low (together with dividend yield for that company) AI would be interested in loaning out for short selling stock of ABC.

Idea 2: Also i see that stock for short selling of company ABC can be borrowed either:
- directly from some shareholder that owns ABC (must have some disadvantage)
- via Broker Firm that is holding the stock on its books or has it available from its clients

Idea 3: All trading happens via Broker Company with Broker Commissions

Idea 4: Player holding a set of securities can put them on market (for others to borrow) via broker A,B or C for certain short interest and broker commission.

Idea 5: Opposite roles can be used where player is the Broker Company where:
- player (broker company) adjusts spread between market short interest it pays for stock holders and interest it offers to those who want to borrow
- player (broker company) sets commissions for brokerage services (per trade?)
- player invests in advertisement and training to improve chances to attract other AI players to trade via player Brokerage business and provide securities for others to borrow
- all stock trades / bond trades need to be performed via Broker Company. Again, AI would choose the Broker Company with best price and quality of service
- during start of the game all trading can be initially done via non-competative Government Company such as city securities depository

Final thoughts:
I believe there would by synergy between game mechanics where players would be incentivised for launching new IPOs of other companies (by using already built in "acquire private company" functionality) as more publicly traded companies = more trading = more commissions from trading at player's brokerage company. Additionally if investment banks are introduced as separate companies then it is possible to explore the IPO business where anyone willing to IPO would use either Investment Bank or Securities Depository as a placement (if no banks are present) where IPO price would be dependent on quality of services and available investors.

For example, Investment Bank A spending for marketing is 10mil per annum while Investment Bank B has got spending of 1mil per annum. This would result in more capital available (therefore higher IPO value) when AI or player choses to do IPO via Investment Bank A. Additionally while Investment Bank A would have much better clients (potential IPO investors) the minimum IPO value would be much higher as well as commission % for IPO taken by Investment Bank. Here i believe Investment Bank should be controled by either AI or Player.

As for rest of the functions that i proposed in poll, there could be similar game mechanics just by providing additional elements such as "Investment Banks, Venture Capital Firms and Market Makers", to the whole process, where IPOs, options contracts and other derivatives must be underwritten by intermediary.

Hope you get the idea!

[saferain]

Alright, lets see (lets start with something simple):

Short selling
- Invovles: Underlying Security, Sell side, Buy side, Ready to borrow / loan (securities) side, Intermediary (broker)

Idea 1: Already i see AI strategy where if AI holds stock ABC and interest rates are low (together with dividend yield for that company) AI would be interested in loaning out for short selling stock of ABC.

Idea 2: Also i see that stock for short selling of company ABC can be borrowed either:
- directly from some shareholder that owns ABC (must have some disadvantage)
- via Broker Firm that is holding the stock on its books or has it available from its clients

Idea 3: All trading happens via Broker Company with Broker Commissions

Idea 4: Player holding a set of securities can put them on market (for others to borrow) via broker A,B or C for certain short interest and broker commission.

Idea 5: Opposite roles can be used where player is the Broker Company where:
- player (broker company) adjusts spread between market short interest it pays for stock holders and interest it offers to those who want to borrow
- player (broker company) sets commissions for brokerage services (per trade?)
- player invests in advertisement and training to improve chances to attract other AI players to trade via player Brokerage business and provide securities for others to borrow
- all stock trades / bond trades need to be performed via Broker Company. Again, AI would choose the Broker Company with best price and quality of service
- during start of the game all trading can be initially done via non-competative Government Company such as city securities depository

Final thoughts:
I believe there would by synergy between game mechanics where players would be incentivised for launching new IPOs of other companies (by using already built in "acquire private company" functionality) as more publicly traded companies = more trading = more commissions from trading at player's brokerage company. Additionally if investment banks are introduced as separate companies then it is possible to explore the IPO business where anyone willing to IPO would use either Investment Bank or Securities Depository as a placement (if no banks are present) where IPO price would be dependent on quality of services and available investors.

For example, Investment Bank A spending for marketing is 10mil per annum while Investment Bank B has got spending of 1mil per annum. This would result in more capital available (therefore higher IPO value) when AI or player choses to do IPO via Investment Bank A. Additionally while Investment Bank A would have much better clients (potential IPO investors) the minimum IPO value would be much higher as well as commission % for IPO taken by Investment Bank. Here i believe Investment Bank should be controled by either AI or Player.

As for rest of the functions that i proposed in poll, there could be similar game mechanics just by providing additional elements such as "Investment Banks, Venture Capital Firms and Market Makers", to the whole process, where IPOs, options contracts and other derivatives must be underwritten by intermediary.

Hope you get the idea!

Hi, thank you for taking the time to write these plans. Although these theoretical contents are similar to reality, it is difficult for the development team to produce the contents you envision.
You have to learn how to think from the perspective of game development.