Financial Market Structure (FMS)

Course description

Financial market structure is about how legislation, technology, and trading rules and traditions influence trading strategies and market quality, such as efficiency and liquidity.
Efficiency and liquidity are often taken for granted in financial economic theory, but in reality they vary considerably, both over time and across assets (for example stocks, bonds, and derivatives). This course aims to provide students with a basic understanding of how variation in the market structure affects market quality and trading strategies, such as market making, arbitrage, and block trade execution.
The course combines basic theoretical and empirical concepts with current issues in the field. In addition to lectures and seminars based on the textbook and academic articles, the course includes computer labs with market data analysis, as well as several guest lectures.

Intended Learning Outcomes
The overall aim of the course is to introduce basic theoretical and empirical concepts in market structure, and to provide the students with insights in current issues in market structure research and practice.

Upon completion of the course, students should be able to:

Knowledge and understanding
1. Describe basic concepts that influence trading strategies and the degree of efficiency and liquidity in financial markets.

Skills and abilities
2. Apply empirical tools to measure market liquidity, market efficiency, and transaction costs based on financial market data.

Judgement and approach
3. Evaluate changes in market structure, financial regulation, and financial technology, with respect to trading strategies, market efficiency, and market liquidity; theoretically as well as empirically

Change semester  

Course title:
Financial Market Structure
Semester: Autumn term 2019
Study period: 1 2
Rate of studies: 50%
Level: Graduate level (second cycle)
Credits: 7.5
Language of instruction: English

Course code: FE5133



Course coordinator:
Oskar Sjölander
Head of course:
Björn Hagströmer
Björn Hagströmer
Student services:
Read more