Brief Information On Reuters

 

Two leading names in financial education have come together to produce an exciting new concept in financial training. The Reuters Financial Training series is a collaborative effort from leading finance publisher John Wiley & Sons and international news service Reuters. Everyone working in the financial markets will be familiar with Reuters.

The Reuters screens that sit on every trader's desk supply an astonishing range of financial news and information. Allied with Reuters is John Wiley & Sons Inc., the largest independent publisher in the USA, with a stream of prestigious authors, including Warren Buffet, George Soros, Peter Lynch, Merton Miller and Peter Bernstein.

Different Fields within Finance Using Reuters

Technical Analysis guides novices through the fascinating and increasingly popular field of technical analysis. Using charts and screen grabs from Reuters’ latest trading software, the book explains clearly the principles and practices of this intriguing art. 

A new concept in financial education training, Foreign Exchange and Money Markets guides novices through the intricacies of the world’s wealthiest capital exchange markets. This book sets out to give a clear understanding of how and why these markets function, and explains the associated jargon. Readers will be able to take a more detailed look at Money Market and Foreign Exchange instruments and will be able to examine, in particular, the parameters which must be defined in order to place a value on these instruments, together with basic valuation techniques.

An Introduction to Bond Markets introduces novices to bonds, notes, derivatives and other instruments used in the world's largest markets. Readers will learn how these products are traded and quoted in the financial markets. This comprehensive guide bridges the gap between academic texts that are often too theoretical, and the more technical practitioner's works.

An Introduction to Equity Markets guides novices through the intriguing world of equities. This book explains clearly how equity markets work, what the instruments traded are, who trades them, how equities are valued, and how the international markets differ. Subjects addressed in this book include Equity Valuation, Share Issues, Equity-linked securities and Derivatives. Additional support is given in the form of charts and screens from Reuters' trading software.

 

Data coverage within Reuters

 

Reuters provides access to historical and real-time financial information and news items.

*Some Stock Exchange and Futures Exchange data are “Selective Access”, which means you cannot access it real-time, unless you subscribe to it by paying subscription fees. However, most of them also provide free delayed access to this data (the delay may be for 15 minutes to several hours depending on the exchange). For example, if you want to see Cheung Kong stock price at Hong Kong Stock Exchange, you can type 0001.HK into Reuters Terminal, only to find that it is selective access. However, you can see its delayed price by typing /0001.HK. Some delayed data is also selective access and thus cannot be seen on these systems (this is usual for major international exchanges).

Within Reuters data is collected and stored at different se frequencies. Frequencies (of data collection) and how far back these are stored for are listed below:

• Daily (2 years)
• Weekly (5 years)
• Monthly (10 years)

This is the standard data collection scheme used for all financial data within Reuters (except for historical economic data).

To view data collected on shorter intervals (say hourly or tick-by-tick) you must download and store this data yourself. For example, if you want Japanese Yen tick data for a one-month period starting now, you can download this using Graphics or Excel/Reuters Tools. For Japanese Yen tick data covering all of 1997 you would not be able to get this through the Reuters system. For data requirements not covered within Reuters as outlined above, you would have to approach the exchange or other data vendors yourself to buy this data (usually provided on a CD-ROM).

Reuters contains some economic data. The procedure to access this is complicated the instructions are given below. Economic data may be provided for longer time periods (some going back 30 years) as opposed to the fixed time periods for other financial data is stored within Reuters. For economics data, the speed guide is HISTORY/ECON1 to HISTORY/ECON9, type this in on Reuters Terminal and press Enter. Note that the real-time data for economics data is not available, since most of these are reported on a quarterly or yearly basis. These guides list the particular economic data and the representative code associated with it. For example, axxPRIME represents the Prime Lending Rate for a particular country. The “xx” part of this code represents the two-letter country code. To view the Prime Lending Rate for Singapore type in “aSGPRIME” and press Enter (note the small ‘a’). This will open a Terminal screen with the message “aSGPRIME: Data not available” because economic data is not real-time. You must use Reuters Graphics to view this data. Right-click on “aSGPRIME” and select “Charts/Line” to open up Reuters Graphics. Once Graphics opens (may take some time) no time series will be shown, and in the bottom left an error message will be shown “Analysis could not be produced because insufficient data was returned”. This is due to the fact that Graphics was set to display Daily data. Change the frequency from Daily to Monthly, Quarterly or Yearly, using the drop-down list on the top of the screen. The time series of the Prime Rate will then be displayed, and can be copied and pasted into an Excel spreadsheet. Not all economic data is provided for each country. Along with the manuals provided in the labs is a listing of the specific economic data and code provided with each country.

Netcentric Financial Markets Laboratory

The Netcentric Financial Markets Laboratory was launched in fall 2001 with the mission to provide world-class teaching and research opportunities in financial markets for the Robert H. Smith School of Business at the University of Maryland. Developed as part of the University of Maryland's Flagship Initiative in Finance and Technology, the two labs emphasize hands-on learning and utilize the latest in technology. Real-time data and analytical tools are provided by Reuters and displayed on Daktronics’ electronic display boards and a 20-foot electronic stock ticker. 

In the teaching lab, students are analyzing real-time and historical data to understand financial instruments. They also are building and testing investment portfolios using professional software packages. “The chief goal of the lab is educating our students in real-time financial concepts to increase their marketability,” says Russ Wermers, assistant professor of finance and lab director. “The second goal is cutting-edge faculty research – studying the financial markets of the future.”

The Financial Lab is the second major component of the business school’s Netcentricity Laboratory.

 

Reuters 3000 Student Prompt Sheet

 

1. There are 2 main Reuters 3000 applications available to students in Netcentricity laboratories in Van Munching Hall (1318 located in old wing on the first floor, and 3505 located in the new wing on the third floor):

• Reuters Kobra

• Reuters Power plus Pro.

The first one is a Microsoft Excel-based application with lots of analytical capabilities; finance professionals use the second one mainly for research purposes. Both applications are identical in functionality and students are free to select the one they like.

 

What is Reuters 3000 Xtra?

Reuters 3000 Xtra is an information system used in the workplace by financial professionals. It provides real-time and some historical information on financial markets and news internationally.

 

Understanding Key Tools and the Operating Environment of Reuters

The Reuters 3000 Xtra system has tools and features which offer the user great flexibility for creating customized screen displays and analytical applications.

Kobra
Kobra is an object-oriented information environment that enables the user to access and retrieve information from Reuters.

Kobsheets
Kobsheets are windows or bays where information is displayed in the Kobra environment. By default, the Reuters screen is divided or split into three Kobsheets for organizing information. Kobsheets offer flexibility in tailoring information layouts to suit your information needs. For example, you can design fully integrated information displays for monitoring dynamic changes happening in financial markets, to particular stocks or in news from either Dow Jones or Reuters wire services.

PowerPlus Pro
Although not covered in the introductory workshop, PowerPlus Pro is a separate analytical tool providing ready-to-use models and quantitative functions using Microsoft Excel. Users are able to "drag and drop" data from Kobra to PowerPlus Pro to create spreadsheets for advanced analysis or tracking information.

How to Logon

·                     Hold down, at the same time CRTL and ALT keys and press DEL.

·                     Type in your username and password at login screen (supplied by instructor).

·                     Make sure Domain name is set to SFSC.

Starting Reuters Kobra application

Perform either one of the following:
Double-click on Reuters Kobra on desktop .
- OR-
From Start Menu, click on Programs, then click on Reuters 3000 Xtra, then click on Reuters Kobra and wait for the system to initialize.

Access and Navigation

In general, there are not only numerous ways for users to access information and navigate the system, but also there are multiple ways for users to perform the same activity or operation.

Note:

·                  "click" means left-click mouse.

·                  "right-click" means right-click mouse.

·                  Three basic methods for accessing information and navigating the system:

1.      Pull-down menus in Windows.

2.      RICs or Reuters Instrument Codes - obtain RICs for specific companies by using Directory (Press Shift and F3).

3.      Index (hyperlink to information by double-clicking on its RIC in < > or [ ] brackets).

In kobsheet
- double-click to insert an object.
- right-click mouse.

And, bear in mind, there are a number of Shortcut keys you may also use:

 

 

SCREEN DISPLAY BY DEFAULT

This Screen Capture shows a screen display by default.

You can retrieve information separately using these three split screens. To get this screen display, go to File and select New. Double click "Double click to insert an object" to get ready to access information.

RETRIEVING STOCK QUOTES

This Screen Capture shows stock quotes for Cisco (traded on NASDAQ), Pfizer (traded on NYSE), and Coca Cola (traded on NYSE).

Type in "/CSCO.O" in this window. "/" is for delayed quotes. "CSCO" is the ticker symbol for Cisco Corporation. ".O" is the Exchange ID, a part of Reuters Instrument Code (RIC) for NASDAQ. "N" is Exchange ID for NYSE. For a stock traded on American Stock Exchange, you only need to type in "/" and the ticker symbol, such as "/CAS" for Castle AM Corporation.
You can also use F4 to display stock quote browser.
You can get ticker symbols by using "On Line Directory".

GRAPHICAL PRESENTATION
OF STOCK MOVEMENTS

This Screen Capture is a graphical presentation of stock movements in daily increment for Cisco, Coca Cola, and Pfizer. Minute, monthly, quarterly, and weekly increments are also available. Use the-arrow-pointed button to specify options.

Alternative way to get graphs from the stock quote table.

·         Point at "/CSCO.O" and press on the right button of the mouse

·         Select "Related Graph" The graph will show on the screen

RETRIEVING
A FINANCIAL SUMMARY
OF A COMPANY

This Screen Capture shows related company data for Cisco.

To get this information, repeat steps for displaying graphs(2). Instead of selecting "Related Graphs", select "Related Company Data".

 

 

USING INDEX

This Screen Capture shows steps to retrieve NASDAQ indices using "INDEX" .

The use of "INDEX" enables you to utilize the menu-driven structure to access and retrieve information. Information is organized hierarchically by market, country, news, and other topical categories. Anything with "< >" is a hyperlink and is clickable. You can get into the next layer of the hierarchy by continuously clicking "< >".

·         Type in "INDEX" in the window from a new screen

·         Click on "<EQUITY>"

·         Click on "<G24/EQUITY>"

·         Click on "<US/INDICES1>"

·         Click on "<NAS/INDICES1>"

 

 

This Screen Captures shows historical financial information for a company.

·         Type in a RIC for a company, such as "/CSCO.O"

·         Double Click on "CSCO.OB2"

 

 

GETTING COMPANY NEWS
FROM A STOCK QUOTE TABLE

This Screen Capture shows steps of retrieving the news for a company from a stock quote table.

·         Type in a RIC for a company, such as "/CSCO.O"

·         Point at "/CSCO.O" and press the right button of the mouse

·         Click on "Related News"

·         Click on the news headline to get the text

 

 

SEARCHING FOR NEWS USING KEYWORDS AND BOOLEAN OPERATORS (1)

This Screen Capture shows how to search for news using keyword(s) and Boolean Operator(s).

Commonly Used Boolean Operator

AND - helps you to narrow down the search. For example:
"Nortel" AND "Stocks" will retrieve the news that contains both terms.

·         Double click on "Double click to insert an object"

·         Select "News" from the menu

·         Type in "A" for all news.

SEARCHING FOR NEWS USING KEYWORDS AND BOOLEAN OPERATORS (2)

This Screen Capture shows a single keyword search in the news headlines.

Type in a company name: "Nortel" (you must use quotation marks). Double click this news headline to get the text

This Screen Capture shows the use of a Boolean Operator, AND, to narrow the search.

Type in: "Nortel" AND "Shares"

 

 

 

 

How can I run a Reuters application?

Reuters Kobra Reuters Power plus Pro

Double click this icon

Reuters Kobra.lnk from the desktop

Double click this icon

Reuters PowerPlus Pro.lnk from the desktop

Alternatively, you can select either of icons from the Start menu -> Programs -> Reuters 3000 Xtra ->

Reuters Kobra.lnk or Reuters PowerPlus Pro.lnk .

2. To get what they need from Reuters applications students have to know the RIC – Reuters Identification Code, a unique security or market index identificator. Sometimes it is also called Ticker. For example, GE is the RIC for General Electric and .DJI stands for Dow Johns Industrial Average. Please note that RICs for the same company are different depending on the source of data students use in Reuters. For instance, GE is the right RIC for New York stock exchange while GE.F is the one used for quotes of the same stock in France.

 

How can I use system help?

You can use a pretty good help capabilities provided by Reuters Kobra. To access help you should:

• Right click an empty frame and select Quotes from control menu

• Put cursor in the command combo box right under the main menu in the middle of the screen

• Type in REUTER (please remember it’s case sensitive!)

The system will retrieve the main help screen for you in the selected frame.

Hint: Use F6 functional case to maximize and restore this frame for your convenience.

From now on each type you double click an item in <> parentheses, <EQUITY> or <BOND> for example, the system will display a corresponding help screen. Using this approach, students can search for stocks, bonds, indices, options, mutual funds, etc.

 

What to do if you do not know the RIC of your company?

Reuters Kobra Reuters Power plus Pro

1. Click the Reuters Lookup button (the magnifying glass button next to the binocular one) on the main toolbar

2. In Name Search screen form select Name from the first combo-box, Start With in the second one and type in the name of the company in the third.

3. Click Find button

4. Search results will be provided in the tree below

1. Follow Reuters -> Securities Data ->

List from the main menu

2. In Step 1 – Security List Subject

Selection screen form type in your company name in the Search Text: field and click Search button

3. Search results will be provided in the tree below

 

How to retrieve real-time quotes if you know the RIC for your company?

Reuters Kobra Reuters Power plus Pro

1. In any empty frame on the main screen click the right mouse button and select

Insert -> Quote from the menu

2. On the main toolbar type in your RIC (GE, for example) in the combo-box on the right from Q and press Enter

3. Real-time data will be inserted in the active frame

0. Select A1 cell on the worksheet

1. Follow Reuters -> Real-time Data -> List from the main menu

2. Type in your RIC in the Code field on the form and click Add button

3. Click Next > button at the bottom of the screen form

4. Follow the remaining steps provided by the screen wizard to select needed fields and press Enter

5. Result of your selection will be inserted starting from cell A1

 

How to retrieve financial data, i.e. historical earnings and balance sheet data of your company?

Reuters Kobra Reuters Power plus Pro

0. Activate the frame on the screen that 0. Select A1 cell on the worksheet contains quotes of your company

1. Click the right mouse button and select Related Company Data from the menu

3. The summary of financial data will be provided in the new window

1. Follow Reuters -> Securities Data ->

History from the main menu

2. Type in your RIC in the Code field on the form and click Add button

3. Click Next > button at the bottom of the screen form

4. In Fields by Category tab there are four folders: Company, Economic Indicator, Equity and Index. Click plus sign next to the folder name to open it and scroll down to the data you need

5. When you finis with data retrieval click Finish button. Result of your selection will be inserted starting from cell A1

 

How can I find equity indices?

Remember that RICs for indices unlike those for stocks and bonds always start from dot, for instance .DJI for Dow Jones Industrial.

Chains of indices always start from 0#., for example 0#.GSPINEX

 

What are delayed and real-time quotes?

Delayed quotes are displayed with 15 minutes delay whereas real-time quotes are not delayed at all. If realtime quote is not available, you can retrieve delayed quotes by providing “/” sign at the beginning of your RIC, i.e. IBM.N is a real-time while /IBM.N is delayed.

The best place to start searching for an index is to use the help screen with US/INDICES1 as a RIC. Then follow hints to continue with your search, i.e. double click any link in <>.

Here is the list of the most frequently used U.S. equity indices:

Dow Jones indices and constituents:

Standard & Poor indices and constituents:

 

How to get a stock quote from NASDAQ vs. NYSE vs. other exchanges?

When your RIC is available to get quotes for the same stock on various exchanges you need to know the exchange ID. You need to type your RIC followed by the exchange ID, i.e. GE.N – General Electric on NYSE whereas GE.QQ will be the same on NASDAQ

The most popular Ids for exchanges:

NASDAQ

.0Q - NASDAQ stock market

.0B – OTC Bulletin Board Stocks

New York Stock Exchange

.N

List of other American stock exchanges:

 

Where can I find information about debt markets and instruments?

Use US/DEBT as a RIC then double click any link in <>.

 

How to find a risk free market rate?

RIC for that is US3MT=RR

 

How can I find information about money markets and FOREX?

A great place to start is to use MONEY as a RIC: