Course Details in 2022/23 Session

Module Title	LM Market Microstructure and Trading Techniques
School	Birmingham Business School
Department	Finance
Module Code	07 36912
Module Lead	Professor Patricia Chelley-Steeley
Level	Masters Level
Credits	20
Semester	Semester 2
Pre-requisites
Co-requisites
Restrictions	None
Contact Hours	Lecture-25 hours Seminar-5 hours Practical Classes and workshops-10 hours Guided independent study-160 hours Total: 200 hours
Exclusions
Description	This module is an introduction to the art and science of security trading. Using a simulated trading platform, it provides students with understanding of how global securities markets work in practice, and allows them to develop an understanding of how evolving practices in market microstructure and the implementation of trading strategies respond to innovations in information technology and competition among market participants. The module will examine issues such as: market microstructure; the role of different trading mechanisms; different types of traders; the roles of different types of trades and traders; market rationality and efficiency. The module also critically examines how different trading systems influence key concepts such as market quality, liquidity, risk management, financial derivatives, trade securities and operational efficiency. Running model portfolios and writing investment policy statements will also be considered.
Learning Outcomes	By the end of the module students should be able to: Explain fundamental market microstructure theories along with their role in promoting responsible and sustainable business practices Interpret and evaluate security market designs, and recognise the reason(s) behind employment of diverse trading systems in key financial markets such as Xetra, London Stock Exchange, NASDAQ and NYSE Calculate and interpret key microstructure measures such as quoted spread, effective spread, Roll spread, order flow imbalances, measures of efficiency and market quality Critically appraise different trading systems related empirical evidence that examines the impact of changes in trading system on securities markets Evaluate trading/investment strategies based on fundamental analysis and technical analysis, using various order types, including market orders, limit orders, stop orders etc Critically assess trades in different market structures, including order and quote driven markets, continuous and call markets, crossing networks and dark pools Evaluate trading and trader’s performance.
Assessment	36912-01 : Individual Assignment 1 : Coursework (50%) 36912-02 : Individual Assignment 2 : Coursework (50%)
Assessment Methods & Exceptions	Main & reassessment: 2,000 word individual assignment (50%) & 2,000 word individual assignment (50%). Students who fail the module resit the failed component(s) only.
Other
Reading List