ALADDIN STOCK TRADING PLATFORM

ALADDIN STOCK TRADING PLATFORM
Mohammed G. Alhallafi
EDCI650 Curriculum Design & Development
Andrews University
Dr. Faith-Ann McGarrell

EXECUTIVE SUMMARY
• Aladdin Stock Trading Platform (ASTP) is a Web-based exchange platform replicating Saudi Arabia’s
national stock market, Tadawul
• ASTP is designed to train high school students grades 11 and 12 in the protocol and practices to Tadawul
securities trading
• We use the same multi-asset trading platform infrastructure as the financial sector, so that buying and
selling operations take place in a simulated real-time exchange environment
• Our products and services enable students to train as traders in conducting equity swaps, derivative and
stock trading, as well as investor strategies for gaining the most from the alternative securities segments, oil
and other commodities trading, as well as the Islamic insurance markets in a single environment

GLOBAL PROSPECTUS
• Global prospectus to market entry of the ASTP curriculum is timely, and in line with the
expansion of Islamic stock exchange around the world
• The recent announcement of Tadawul’s expansion in cooperation with other national
exchanges outside of the GCC region, indicates that the demand for knowledge sharing
and expertise, “open[ing] the door for people development” and encourage exploration of
future opportunities “in matters related to capital market development, particularly in the
area of Islamic finance” is growing (MENAFIN.com, 2014)

NICHE MARKET SEGMENT
• The ASTP training curriculum, was developed to instruct high school students, grades 11 and 12, in stock
trading is the first of its kind
• The ASTP (Aladdin Stock Trading Platform) is the sole curriculum product that instructs students in the
trading activities of the GCC markets
• Focused on simulated financial transactions, stock trades where students ‘buy’, ‘sell’ and ‘call’ or ‘put’
securities contracts, ASTP is unlike other similar products on the market
• Stock contract structuring (Sukuk) transactions include Islamic insurance contracts (Takaful) on the
secondary markets, comprised of re-insurance assets and fund management, are the core investing
products tested in the simulation environment

PRODUCT STRATEGY
• Aladdin niche differentiation strategy reflects the high technology focus of the stock market exchange
simulation software company
• The unique and specialized product is designed to compete by narrowing global market segmentation
by way of Performance, Size and High End solutions
A number of advantages are sought:
• Competitive advantage in eliminating barriers to entry and potential substitution by competitors
• Strong customer segmentation response exceeding expectations
• Promotion of lead brand identity through differentiation and consistency in quality
• Broad representation of the trading platform to market segments
• Venture capital funding supports the niche market priority of R&D new product innovation and market
expansion

INSTRUCTIONAL VALUE
• The simulation commences with a brief Introduction to the Islamic Law of Contracts
The Islamic law of contract - exchange and usufruct
Partnership contracts (Wakala)
The rules regarding foreign exchange transactions (Sarf)
• Simulation activities orient students to the stock selection process
• Students are also introduced to the concept of Islamic investment funds
• Analytics include graphical illustration of exposure risk to ‘buy’ and ‘sell’ decisions is part of the
exchange dashboard

ESSENTIAL QUESTIONS
• What are the instructional requirements of GCC market brokers, and especially those trading
on the Tadawul in respect to Shar’ia rules on contract definition, transaction, and transfer?
• How will ASTP’s pioneering simulation techniques contribute to future development of
exchange trading platforms relevant to GCC and other markets guided by Islamic law?

ENDURING UNDERSTANDINGS
• The course begins with an introduction to the practice of buying and selling securities
• Students learn how stock transactions are affected by share prices, and fluctuations in bear and bull
markets
• Sharia’a rules to contract transactions and buying and selling operations conducted on the ASTP
exchange inform enduring understandings of GCC investment practices
• Lessons learned from the simulation rounds in reporting of individual and training group performance
inform future decisions in securities trading on the Tadawul or other exchange

THEORETICAL CONSIDERATION:
BACKWARD DESIGN
Global in perspective, Backward Design offers foundation to the ASTP curriculum project
Backward Design is an experimental methodology using goal setting as the basis for project
development in a three (3) stage design process:
1. Identification of desired outcomes
2. Determination of reliability in evidence and levels of acceptability
3. Activities effective in producing results

THE WHERETO OF ASTP
The WHERETO principle of Backward Design theory is integrated in the Aladdin Stock Trading Platform (ASTP)
Stage Design process guided by PBL principles:
• W – Where the product is the destination of broker training
• H - Holds the attention of trainees throughout the simulation
• E – Equips trainees with simulated real time experience
• R- Rethink big ideas, Reflect on progress, Revise curricula
• E – Evaluation of progress and self-assessment leads to lessons learned
• T - Tailored for exponential performance
• O - Organize to optimize understanding

PBL SIMULATION
The Problem-Based Learning (PBL) theory is one of the core curriculum design concepts applied to digital
simulation
The Problem-Solving Model offers resolution of thinking strategies and domain knowledge in development of
the ASTP stock exchange simulation curriculum
Simulation events are sequenced in:
• Definition of the problem
• Gathering financial information from analysis
• Developing portfolio strategy
• Finding and sharing solutions to risks
• Implementation of decision

ACTION-BASED PROBLEM SOLVING
• Action-based problem solving (AbPS) simulation links student brokers trading on the exchange
• AbPS supports a problem-solving chain, that includes portfolio investment advice from leading financial
market analysts (Barlow et al., 2011)
• Confidence levels are part of the real-time simulation, built into each stage of the curriculum to guide
student engagement
• Performance reporting of individual and team investment decision informs evaluation of the curriculum

SIMULATION MAP
Aladdin Stock Trading Platform
Aladdin Stock
Trading Platform
Tadawul Simulation Exchange
Cross-portability Blackboard
and WebCT
Homepage User Portal
Tadawul Trading
Platform SaaS
FAQ/SITE MAP
Stock Market
Analysis
User Dash
Performance
Monitoring

ALADDIN SAAS
• Aladdin’s selection of an exchange trading simulation curriculum required engineering of a software
application as system (SaaS) product
• The SaaS offers universal compatibility with a number of real-time exchange trading platforms
• The company’s goal of creating a truly global stock market experience in one multi-asset trading platform
• Our electronic trading technologies are exceptional in global client management capabilities
• Synchronize direct access and order routing trading platform partners all in one effective solution

PRODUCT FEATURES & SPECIFICATIONS
Chart 1
Product Features & Specifications
Core Framework * Java: J2EE 1.4 or above, J2SE 1.4.2 or above on browser side
* J2EE based services
* CORBA : any OMG compliant CORBA
* JDBC
* JNL : numerical library for Java by Visual Numerics
* XML
* FIX/FIXML 4.2 and higher
* HTTP/HTTPS : default version supported by JVM in browser
* HTML 4.0, JavaScript, DHTML, CSS
Databases * Sybase 12.5 and higher
* SQL Server 2005 and higher
* Seamless Integration with other Databases
Browsers * Netscape 7.0 and higher, Mozilla browsers
* Internet Explorer 6.0 and higher
Platforms * Windows NT, 2000, 2003, XP
* Solaris 8 and above
* Linux
Servers * Windows NT, 2003, XP Professional
* Solaris 8 and above
* Linux
Web Servers * IIS 5.0
* Iplanet Enterprise Server 6.0 and above
Application Servers & Servlet Engines * Integration with any servlet engine that supports Java Servlet 2.0
* Weblogic, Websphere
Third Party Systems * Reuters Java SSL
* Tibco Rendezvous
* MQ Series, any JMS implementation
Chart 1. Aladdin specifications
(FinTrack, nd.).

LEARNING ORGANIZATION BENEFITS
• The Aladdin unified exchange platform is compatible with standard distance learning platforms for total
integration with a client’s existing virtual learning infrastructure
• Our curriculum product leaves no footprint, so that institutions are ensured of automated updates, and
sustained interaction
• The learning platform comes with ticker interface with actual GCC stock exchange listings, as well as
investor advisory simulations
• Aladdin instructional solutions comply with current financial industry-standard technologies (i.e. Java,
J2EE, XML, FIXML, FpML and HTTP/HTTPS) with Web based SaaS automatic update and cloud data storage

EVALUATION
The ASTP Quality Assurance audit covers all components of the simulation from product development to
evaluation for redesign of the next iteration in the product series:
1. Curriculum Developer/Designer Self-Evaluation
2. Student/Participant Evaluation
3. Expert External Evaluation (Checklist)
4. Peer Evaluation (Checklist)

FUTURE DEVELOPMENT
• Future research and development of the curriculum focuses on performance and benchmarking of
training outcomes
• The ASTP simulation model allows for continuous performance reporting
• Evaluation of fidelity and validity in user reporting improves reliability; attributing to development of the
simulation design concept over time through: 1) Live simulation; 2) Virtual simulation; and 3) Constructive
simulation in a synthetic environment

SALES & MARKETING
• Aladdin is poised to take advantage of two priority regional markets where Islamic Shar’ia rules to
securities trading applies to growing population of Muslim investors:
• Asia Pacific
• Gulf
• Our sales and marketing objective is to expand the GCC multi-asset trading solutions to both developed
and emerging markets

REFERENCES
• Barlow, M., eds., et al. (2011). The Problem Solving Experience: Classroom Curriculum Designed to
Promote Problem Solving in the 21 st Century. Future Problem Solving Program International, Inc. Retrieved
from: http://www.fpspi.org/pdf/Curriculum%20Coursework%20Introduction.pdf
• Bley, J., & Chen, K. (2006). Gulf Cooperation Council (GCC) stock markets: The dawn of a new era.
Global Finance Journal 17(1), 75-91.
• Fritzsche, D. J., Rosenberg, Richard D. (1989). Business ethics, experiential exercises and simulation games.
Developments In Business Simulation & Experiential Learning 16,46-49.
• Insurance IPOs approved (2007).MEED: Middle East Economic Digest 51 (3), 28.
• Saudi-Tadawul, Bursa Malaysia sign cooperation agreement (2014). Menafn 20 Feb 2014. Retrieved from:
http://menafn.com/1093773869/Tadawul-Bursa-Malaysia-sign-cooperation-agreement
• Sukuks – A new dawn of Islamic finance era…..(2008). Global Investment House Jan 2008. Retrieved from:
http://www.menafn.com/updates/research_center/regional/special_ed/gih0108.pdf
• Tadawul (2014). Saudi Stock Exchange. Available at: http://www.tadawul.sa.com
• Wiggins, Grant and McTighe, J. (2005). Understanding by Design, Expanded 2nd Edition.