Trading and Exchanges [ MGEST2163 ]

' Typology of market structures
' Quality indicators of financial markets
' The basics of execution strategies (order placement,
algorithmic trading, etc.)
' Transaction costs analysis
' The European regulation (MiFID) and its implications for
financial markets

* Explain how financial markets work and how prices come
to reflect information
* Analyze how various trading rules affect price efficiency,
liquidity, transparency, and trading profits
* Implement and assess basic trading strategies
* Analyze and discuss the recent evolution of the
European trading landscape
* Explain and apply the fundamentals of Transaction Cost
Analysis

The contribution of this Teaching Unit to the development and command of the skills and learning outcomes of the programme(s) can be accessed at the end of this sheet, in the section entitled “Programmes/courses offering this Teaching Unit”.

- oral examination
- oral and written assessment of the case study

- Lectures
- Group work (case study)

* Introduction: some facts & figures
* Market structure and design
* Market quality and liquidity
* MiFID & the European capital markets industry
* Fundamentals of Transaction Cost Analysis

* Foucault T., Pagano M. & Röell A, 2013, "Market
Liquidity: Theory, Evidence, and Policy", Oxford University
Press
* Harris L., 2003, "Trading & Exchanges : Market
Microstructure for Practitioners", Oxford University Press
* Giraud JR. & D'Hondt C., 2006, "MiFID: Convergence
towards a unified European capital markets industry",
Riskbooks
* D'Hondt, C. & J.R. Giraud, 2007, "MiFID: the (in)famous
European Directive?", EDHEC Position Paper, March.
* Kissell, R. and M. Glantz, 2003, "Optimal Trading
Strategies", USA (New York): AMACOM, 382pp.

Some lectures given by guest speakers