Session 2

Evolution of Market Technology & Evaluating Market Quality

We’ll explore the evolution of market technology, the importance of speed in trading and methods for assessing the quality of an electronic market.

After completing the weekly section, you will be able to:

1. Illustrate the evolution of market technology
2. Identify the importance of speed in trading
3. Assess the quality of an electronic market

High Frequency Trading and Algorithmic Trading

We’ll explore the impacts of algorithmic and high-frequency trading on markets and the construction of execution benchmarks.

At the end of this week, you will be able to:

1. Describe the impact of high frequency trading in stock markets.
2. Identify the differences between algorithmic trading and high frequency trading.
3. Understand how execution benchmarks are constructed.