25865 Digital and Decentralised Markets
6cpRequisite(s): 24 credit points of completed study in spk(s): C04048 Master of Finance OR 24 credit points of completed study in spk(s): C04258 Master of Finance (Extension) OR 24 credit points of completed study in spk(s): C07021 Graduate Diploma Finance OR 24 credit points of completed study in 24Credit Points spk(s): MAJ08984 c 36cp Finance Major MBA
The lower case 'c' after the subject code indicates that the subject is a corequisite. See definitions for details.
These requisites may not apply to students in certain courses.
There are course requisites for this subject. See access conditions.
Postgraduate
Description
This subject introduces the internal workings of financial marketplaces - market microstructure. It covers the current state of practice in market design/regulation and empirical methods/metrics used to evaluate market quality and performance. The trading process is discussed, describing the interaction of different types of traders, the risks and inventory challenges faced by liquidity providers, the causes of variation in liquidity, and the process by which markets arrive at prices. The subject also discusses market design and how it affects the functioning of markets, including traditional market architectures and new, decentralised market types. This includes topical issues and challenges such as fragmentation of markets, transparency, automated/high frequency trading, asset custody challenges, and market integrity. The subject covers emerging marketplaces and potential future market design based on the 'digitisation' of assets, including the implications of real-time settlement, distributed marketplaces, and decentralised transaction processing.
Detailed subject description.