Trading & Technology
„Trading & Technology” provides students with a profound understanding of financial trading, electronic financial markets and technical innovations in this field. The course will cover both processes and operations (i) of the market itself and (ii) in the interaction between buy side (institutional investors, asset managers) and sell side (bank and brokers) institutions.
Therefore, relevant foundations of market microstructure theory, the concept of market liquidity, state-of-the-art market models (limit order books, dealer and hybrid markets), principles of order matching and the current regulatory framework of financial trading will be discussed and investigated in detail. Furthermore, the horizontal and vertical competition among exchanges, alternative trading systems and systematic internalizers will be illustrated based on industry examples. Students will deepen and practically use this knowledge by executing real-world trading tasks within the LiveX trading simulation software of the trading lab on the campus.
Based on these insights into processes and technologies on the market itself, the course will cover the interaction of institutional investors and institutional brokers as well as the role of technology and of transaction costs analysis in this interaction. The investigation of business models and technology services of institutional brokers will include topics like Direct Market Access, Smart Order Routing, Algorithmic and High Frequency trading as well as Dark Pools.
Learning objectives
Upon completion of the course, you will:
- get an in-depth knowledge of electronic securities trading, enables you to take positions in asset management, brokerage, exchanges and policy making institutions
- have empirical knowledge of market models including underlying processes of order execution and price determination
- be able to assess the quality of a market based on transaction costs and liquidity measures to make optimal trading decisions
- understand key techniques concerning the measurement of market liquidity and market quality
- apply the theoretical knowledge in a simulated trading environments to be able to perform task of traders at buy side trading desks, banks or brokers
Key concepts
- Know the different types of market models and technology solutions of exchanges and alternative trading systems
- Understand the regulatory requirements for securities markets in Europe and assess their impact on the market environment and the underlying processes
- Understand the key technology solutions in the interaction of institutional investors and their brokers like Algorithmic Trading, Dark Pools and Smart Order Routing
Course format
This course is offered in the part-time Master in Finance program and may be attended on a “no credit” basis by individuals not enrolled in the program. Course participants are visitors who are not responsible for assignments and do not take an exam or earn academic credits. As the number of seats in the course is limited, we recommend to register online early.
Faculty
Prof. Dr. Peter Gomber
Prof. Dr. Peter Gomber holds the Chair e-Finance (Department of Information Systems) at the Faculty of Economics at Goethe University Frankfurt since December 2004. He is Co-Chairman and Member of the Board of the E-Finance Lab, an industry-academic partnership between Frankfurt and Darmstadt Universities and leading industry partners (e.g. Deutsche Börse, DZ Bank, Finanz Informatik). Prof. Gomber’s academic work focuses on Digital Finance and FinTech, Information Systems in Financial Markets, Market Microstructure Theory, Regulatory Impact on Financial Markets / RegTech, and Innovative Concepts for Electronic Trading Systems.
Prof. Gomber published several articles on the above topics in leading international journals and was awarded with the Reuters Innovation Award 2000, the University Award of the DAI („Deutsches Aktieninstitut“) 1999, and multiple Best Paper Awards of international conferences.
Beside his teaching responsibilities in Bachelor, Master and Ph.D. courses at Goethe University Frankfurt, Prof. Gomber held executive courses at Goethe Business School, the Frankfurt School of Finance and Management, the Amsterdam Institute of Finance, the ADG Business School and the Deutsche Börse Capital Markets Academy. Among other advisory positions, Prof. Gomber is a member of the Exchange Council of the Frankfurt Stock Exchange. From 2012 to 2018, Prof. Gomber was a member of the Consultative Working Group (CWG) of the Secondary Market Standing Committee of the European Securities and Markets Authority (ESMA).
Before joining Goethe University, Prof. Gomber worked for five years as a Director, Head of Market Development Cash Markets and Xetra Research at Deutsche Börse AG, Frankfurt.
Prof. Gomber graduated in Business Administration and acquired his PhD at the Institute of Information Systems at the University of Giessen, Germany in 1999.
Course Schedule
Date | Sessions |
|---|---|
Fri., July 9, 2021 | 13:00-15:00 |
15:30-17:30 | |
Fri., July 16, 2021 | 13:00-15:00 |
15:30-17:30 | |
Fri., July 23, 2021 | 13:00-15:00 |
15:30-17:30 |