Centre for Capital Markets & Risk Management hosts lecture on ‘Capital Markets: Trading and Technologies’ on July 14

The talk by Dr. Bidisha Chakrabarty, Edward Jones Endowed Professor of Finance at the Chaifetz School of Business, Saint Louis University, focussed on ownership structure of stock exchanges, effect on market quality, trading techniques, impact of trading technologies on investor portfolios and costs and trading techniques of low latency and high frequency trading.  

Dr. Chakrabarty started the session by discussing basics of capital markets trading highlighting the importance of transparency for capital markets. She explained that the structure of modern stock exchanges can be classified as: intermediated/specialized market like the New York Stock Exchange prior to 2007; completely electronic including National Stock Exchange, Nasdaq, and hybrid like the NYSE in its current form. She also presented the research evidence on how the structure of stock exchanges affects market quality, and explained the order sequencing by exchanges in the order of Price-Display and Time.