2014 Unit of Study

The session(s) below are for 2014. For Summer School 2014 unit of study availability please visit the Summer School website (main Summer session January/February 2014).

The University of Sydney session calendar shows exact dates for sessions.

Broking and Market Making
UoS Code FINC6003
Credit points 6
Offered Semester 2
Prerequisites FINC5001
Corequisites
Prohibitions
Assumed Knowledge
Additional Information
Lectures 1x 3hr seminar per week
Assessment mid-semester exam (15%), class participation (5%), multiple choice question construction (5%), individual article annotation (10%), major assignment (20%), and final exam (45%)
Description Brokers and market makers play a critical role in the operation of capital markets. This unit firstly provides an overview of capital markets around the globe and an outline of the financial product types available. It then addresses the functions of brokers and market makers, how their performance is evaluated, how they help to make markets more efficient and when their actions lower market quality. The ever changing role of brokers and market makers in a changing financial landscape is examined using academic research literature that focuses on issues that are important to these financial intermediaries. The unit emphasises theory and empirical literature dealing with price formation, information dissemination and trading in limit order book markets, which are becoming the market design of choice. The unit also explores in detail the recent phenomena of market fragmentation and high frequency trading.
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