Equity Markets: Trading and Structure

The course is designed to give students a broad understanding of the operations of equity markets, and an in depth knowledge of liquidity, market structure and trading. In equity markets around the world, investors are increasingly concerned with controlling transaction costs, and innovative trading technologies have been introduced. In this context, the course focuses on the operations of exchanges, trading systems and broker/dealer intermediaries, and on the impact of computer technology. Students will evaluate a spectrum of issues regarding the formulation of trading decisions, market structure design, and market structure regulation. Implications for portfolio management will also be discussed. Simulation software is used to provide hands-on experience with making tactical trading decisions in different market structure environments. Open to Major code S07 and 007 (Finance major).