FINA4401 Microstructure of Financial Markets

6 points
Not available in 2020UWA (Perth)Face to face
Details for undergraduate courses
  • Honours option in Finance [Bachelor of Commerce (Honours)]
This unit builds on the understanding of the trading of financial securities and the design of financial markets established in FINA3307 Trading in Securities Markets. Both theoretical and empirical research in the financial market microstructure literature are examined. Topics include market design, price impact of trading, regularities and commonalities, bid ask spread and their sources, and regulation of the markets.
Students are able to (1) evaluate how alternative market structures develop and process information, and therefore impact on prices differently; (2) examine the role different traders play in the behaviour of stock prices and returns, and the impact of their participation on the other traders and the market as a whole; and (3) evaluate and critique the development of financial markets using the theory and concepts from the market microstructure literature.
Indicative assessments in this unit are as follows: (1) examination; (2) seminar participation; and (3) class presentation and discussion. Further information is available in the unit outline.

Supplementary assessment is not available in this unit.
Unit Coordinator(s)
Dr Joey Yang
Unit rules
FINA3307 Trading in Securities Markets (or equivalent); for Master of Applied Finance students: FINA5524 Trading and Markets (or equivalent), FINA5521 Quantitative Methods in Finance and permission from the course coordinators
Contact hours
lectures/tutorials/seminars/workshops: up to 3 hours per week
  • The availability of units in Semester 1, 2, etc. was correct at the time of publication but may be subject to change.
  • All students are responsible for identifying when they need assistance to improve their academic learning, research, English language and numeracy skills; seeking out the services and resources available to help them; and applying what they learn. Students are encouraged to register for free online support through GETSmart; to help themselves to the extensive range of resources on UWA's STUDYSmarter website; and to participate in WRITESmart and (ma+hs)Smart drop-ins and workshops.
  • Books and other material wherever listed may be subject to change. Book lists relating to 'Preliminary reading', 'Recommended reading' and 'Textbooks' are, in most cases, available via the Booktopia Textbook Finder, which has the functionality to search by course code, course, ISBN and title, and may also be posted or available at the appropriate school's administrative offices. Where texts are listed in the unit description above, an asterisk (*) indicates that the book is available in paperback.