Introduction to Electronic Trading
June 4, 2012, NYC
Registration Fee: US$995.00 Register Location Instructor
Many classes sell out; we suggest registering at least one week in advance to ensure your seat.
Beginner Level, 7 CPE Credits
Instructor: Charles Gates
Hours: 9:00 am - 5:00 pm; Registration/Breakfast begins at 8:30 am
NYC Location: Bayards, One Hanover Square (Financial District)
Electronic trading is transforming the volume, speed, transparency, liquidity and risk of trading in instruments of virtually all major asset classes, and has also facilitated the creation of new trading strategies such as high frequency and algorithmic trading. This course is designed to introduce a roadmap of current participants in electronic markets, to depict how trades are executed electronically, to demystify the jargon, to describe various new trading strategies enabled by electronic trading, to show how new risks arise in those strategies and in new instruments such as ETFs, and to explore important regulatory considerations such as transparency, price execution and clearing. Goals include understanding key dynamics in common sense and less quantitative ways, and gaining sufficient confidence to engage others on these topics. Participants should expect an interactive and exercise oriented format wherever possible.
Course objectives:
By the end of the course, the participant will be able to:
- Understand the nature and scope of electronic trading
- Describe how different asset classes are traded electronically
- Understand algorithmic and high frequency trading
- Discuss trading strategies facilitated by electronic trading
- Understand distinctions between exchanges, ECNs, SEFs and CCPs
- Identify risks associated with electronic trading
Session 1: Overview of Electronic Trading
By the end of the session, the participant will be able to:
- Define what we mean by electronic trading
- Understand participants and drivers of the market
- Describe the evolution of electronic trading
- Outline common elements in the lifecycle of a trade
- Demonstrate how electronic trading differs by asset class
Session 2: Orders, Trade Execution, and Exchanges
By the end of the session, the participant will be able to:
- Describe different types of customer orders
- Demonstrate how exchanges match and execute orders
- Outline elements of a buy-side order management system
- Understand Electronic Communication Networks (ECNs)
- Understand straight through processing
- Discuss dark pools and liquidity
Session 3: Algorithmic and Other Trading Strategies
By the end of the session, the participant will be able to:
- Explain high frequency trading
- Describe algorithmic trading
- Differentiate systematic and discretionary trading
- Understand statistical arbitrage
Session 4 Derivatives, Swap Execution Facilities, and CCPs
By the end of the session, the participant will be able to:
- Understand key characteristics of selected derivatives
- Describe key regulatory and legal changes
- Discuss swap execution facilities
- Explain the role of a Central Counterparty (CCP)
- Discuss future market developments