Market Structure – A Micro Look

This course will provide a look into the inner workings of modern financial markets, and the structure of these markets. Participants will examine bid-ask spreads, liquidity, order flow, high speed trading and other issues that impact the structure of markets and the pricing of the securities trading on the markets. Participants will discuss changes to markets in the US and abroad and the empirical evidence around the effects of those changes.

Course Objectives

By the end of the course, the participants will be able to:

• Describe the structure of securities markets and the key terms and concepts associated with market microstructure
• Identify the role that variables like bid-ask spread and liquidity play in market efficiency and securities pricing
• Discuss changes in the markets over the last two decades and the rise of new market participants like high frequency traders
• Recognize the impact of regulatory and market driven changes in the microstructure of markets
• Identify differences internationally in market structure and the empirical evidence surrounding the effects of these differences

Suggested Prerequisites:

• Fundamentals of the Capital Markets/Securities Industry
• Electronic Trading

Program Level:Foundational

Advance Preparation: None

Computers and Financial Calculators: N/A

Recommended CPE Credits: 7