Microstructure of Markets - FINS4792
Faculty: UNSW Business School
School: School of Banking and Finance
Course Outline: FINS4792 Course Outline
Campus: Sydney
Career: Undergraduate
Units of Credit: 6
EFTSL: 0.12500 (more info)
Indicative Contact Hours per Week: 3
Enrolment Requirements:
Corequisite: Must be enrolled in program 4501 (Finance) or FINS3775 or FINS4775
CSS Contribution Charge: 3 (more info)
Tuition Fee: See Tuition Fee Schedule
Further Information: See Class Timetable
View course information for previous years.
Description
Major markets such as the New York Stock Exchange (NYSE) remained unable to open for hours during crisis periods such as occurred in 1987. In part due to the huge growth in both market microstructure theory and empirical work in recent years, stock markets have become far more competitive in recent years but many remain opaque and it is far from clear that pricing efficiency has improved. This course provides the necessary theoretical insights to comprehend the nature of these radical changes and to understand the direction that both competition and design rule changes are taking global exchange activities for stocks and other financial instruments.
All wealth creation requires an understanding of how asset prices are actually set, how investors can draw on their assets (wealth) when needed, i.e., their liquidity, and at what cost. Should investors delegate choice of their portfolios for their retirement to others or should they become active traders themselves? If so, how and where should they trade? This market microstructure course helps to address many of these fundamental issues, as well as equip students to read, understand and apply the rapidly developing market microstructure literature.