Simple Stock Exchange

Overview

A very simple stock exchange application implemented in plain Java.

Requirements

• JDK 8
• Maven 3.x

Building with Maven

mvn clean install

Running a simple example with Maven

mvn exec:java

Implementation details

This simple application is implemented using separate queues (FIFO) for Trades on every stock that is managed by SimpleStockExchange.

This implementation is accompanied by unit and integration tests that cover 97% of the code.

SimpleStockExchange

This is the central class and a single point of interaction between client and Simple Stock Exchange application. This interaction is defined by StockExchange interface.

This implementation allows registration of Trades on managed stocks and calculation of various simplified properties interesting to investors.

Price of the stock is undefined until there is at least one Trade registered on it. If there were no trades during the last 15 minutes then last calculated value is returned.

Most of the methods exposed by this class are implemented in the following way:

• find a StockManager implementation for requested stock symbol;
  • if the implementation is found then delegate to the method implementing operation requested by client to the StockManager implementation found;
  • if no StockManager is found then StockNotFound exception is thrown.

The method calculateAllStockIndex() is implemented by traversing all stocks managed by SimpleStockExchange and calculating geometric mean of those which have defined price.

AbstractStockManager

This is the abstract class that implements most of the methods defined in StockManager interface except for the calculateDividendYield which is to be implemented in concrete StockManager implementations CommonStockManager and PreferredStockManager or any other in the future if there is a need for that.

AbstractStockManager uses a first-in-first-out (FIFO) queue to register trades happening on stock. The LinkedList has been chosen as a concrete Queue implementation.

The Trades are registered in registerTrade method which uses a synchronized block to add a Trade to the queue. It also performs some simple calculations in the same synchronized block. It adds the registered Trade quantity and value (quantity multiplied by price) to two accumulators which holds amount and value of stock sold in recent time. This simple calculations are performed during the registerTrade phase to optimize and reduce the queue traversals and calculations performed for calculating the price and other properties of stock.

The current price of stock is calculated in calculateStockPrice method which also uses a synchronized block in which it:

• peeks into the queue in a loop until it find a Trade that is not registered earlier than 15 minutes ago;
  • removes obsolete Trades from the queue;
  • decreases values of the mentioned earlier accumulators holding quantity and value of recent stock trades according to the quantity and value of the Trades removed from the queue;
• calculates the current price of the stock by dividing accumulated value by quantity.

Both synchronized blocks in registerTrade and calculateStockPrice methods are synchronized on the same variable - the queue that holds Trades for queue consistency.

NOTICE It is important to note that this solution may not be ideal in the real world application with high trade volumes because of possible lock contention but this application is a simple implementation for which it is good enough.

CommonStockManager and PreferredStockManager

Both of these classes extend AbstractStockManager and implement StockManager interface.

Each of them adds its specialized constructor taking only required for concrete implementation parameters which are:

• lastDividend for CommonStockManager;
• fixedDividend and parValue in case of PreferredStockManager.

CommonStockManager and PreferredStockManager implement its own versions of calculateDividendYield() method.

StockNotFound

The exception that is thrown by SimpleStockRepository in case of client trying to operate on stock which symbol is unknown to the SimpleStockExchange.

Classes summary

Application consists of the following classes:

• StockType stock type enum with values for common and preferred stock;
• TradeType trade type enum with values for buy and sell trade types;
• Trade an entity that holds the actual trade properties for every trade;
• StockManager defines interface for managing stock properties and trades on stock for both common and preferred stock:
  • AbstractStockManager implements methods that are common to both common and preferred stock:
    • CommonStockManager a manager for common stock;
    • PreferredStockManager a manager for preferred stock;
• StockManagerFactory a factory that creates appropriate StockManager for use by SimpleStockExchange class;
• StockExchange defines interface between outside world and the SimpleStockExchange application;
• SimpleStockExchange implements StockExchange interface;
• SimpleStockRepository a repository holding a Map of stock symbols mapped to StockManager that is managing the operations on stock associated with the symbol;
• StockNotFound exception that is thrown by the SimpleStockRepository and passed through SimpleStockExchange to clients that try to operate on stock which symbol is not known to the repository;