School of Management, Unit Catalogue 2006/07

MN50326 Market microstructure

Credits: 6

Level: Masters

Semester: 1

Assessment: EX100

Requisites:

Aims: The aim is to introduce students to the area of market microstructure and provide them with an overview of the models and methods used in this field of study.
Learning Outcomes:
By the end of this unit, the student should be able to:
* define market microstructure and its methodological basis
* critique the existing finance literature
* understand and explain the main models in market microstructure and their limits.
Skills:
Intellectual skills
* the facility to apply subject-specific knowledge into a range of complex situations; TFA
* a critical awareness of current issues and frameworks in finance; F
* the ability to acquire and analyse data, information and situations; to evaluate relevance and validity, and to synthesise it in the context of finance problems; FA
* an understanding of appropriate research and methodological techniques that allow detailed investigation of problems and ability to use these skills to produce professional and critical reports. A
Professional Practical skills
* evaluate the current standing of theories and empirical evidence and suggest improvements to them; TFA
* operate effectively both independently as well as within teams and assume leadership roles where appropriate; FA
* be self-directed and able to act autonomously in planning and implementing. F
Transferable/Key skills
* ability to conduct in-depth research into finance problems. FA
Personal/Interpersonal
* the facility to communicate including presenting and marketing themselves and their ideas. FA
Content:
Choice of market structure, inventory-based models of market making, asymmetric information and adverse selection, auction markets, limit order trading, market transparency.

University | Catalogues for 2006/07