MTH5550 - Market microstructure - 2017

6 points, SCA Band 2, 0.125 EFTSL

Postgraduate - Unit

Refer to the specific census and withdrawal dates for the semester(s) in which this unit is offered.

Faculty

Science

Organisational Unit

School of Mathematical Sciences

Coordinator(s)

Associate Professor Gregoire Loeper

Unit guides

Offered

Clayton

  • First semester 2017 (Day)

Synopsis

Efficient market hypothesis. Extreme events. Volatility clustering. Poisson process. Hawke's process. Correlation estimators. Hayashi-Yoshida estimator. Lead-lag. Market impact. Optimal execution. Agent models.

Outcomes

On completion of this unit students will be able to:

  1. Develop specialised financial skills within the fields of statistics and probability theory.
  2. Understand the complex connections between specialised financial and mathematical concepts.
  3. Apply critical thinking to problems in statistics and probability that relate to financial markets.
  4. Apply problem solving skills within the finance context.
  5. Formulate expert solutions to practical financial problems using specialised cognitive and technical skills within the fields of statistics and probability.
  6. Communicate complex information in an accessible format to a non-mathematical audience.

Assessment

Weekly homework: 10% + Assignments: 10% + Minor project: 10% + Examination: 70%

Workload requirements

Two 1.5-hour lectures and one 1-hour tutorial per week

See also Unit timetable information

Chief examiner(s)

Co-requisites

Only students enrolled in the Master of Financial Mathematics can enrol in this unit. Exceptions can be made with permission from the unit co-ordinator.