Broking and Market Making (FINC6003)


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.

Our courses that offer this unit of study

Further unit of study information


1x 3hr seminar per week


mid-semester exam (15%), class participation (5%), multiple choice question construction (5%), individual article annotation (10%), major assignment (20%), and final exam (45%)

Faculty/department permission required?


Unit of study rules



Study this unit outside a degree

Non-award/non-degree study

If you wish to undertake one or more units of study (subjects) for your own interest but not towards a degree, you may enrol in single units as a non-award student.

Cross-institutional study

If you are from another Australian tertiary institution you may be permitted to underake cross-institutional study in one or more units of study at the University of Sydney.