CAREER: Electronic Trading Systems

University Of California-Berkeley, Berkeley CA

Investigators

Abstract

This project will investigate how information technology is transforming financial markets and stock exchanges, which have historically introduced technological innovations that are later deployed in other markets, with the goal of understanding how other markets will be impacted by electronic trading systems. This research will identify ways to improve current systems, enhance the design of future systems, understand when electronic trading systems are valuable, and anticipate the adoption of future technologies. Using both public and proprietary data from the world's largest electronic market, Nasdaq, this program will use a variety of econometric techniques to explore how electronic trading systems impact stock markets both during and outside of the traditional trading day. The insights into the development of electronic markets and technological innovations in trade will be incorporated in MBA and undergraduate classes to improve understanding of the real-world tradeoffs between different market structures and the organization of an integrated firm versus coordination though markets and in a Ph.D. seminar to study features critical to electronic markets' success and technology adoption and diffusion across electronic markets. This program is the beginning of a research agenda focused on related questions in other electronic markets and ways that information technology transforms commerce.