Professor Larry Harris, a director of Interactive Brokers Group, has published a book and some interesting papers on market microstructure (which studies how exchange occurs in markets) available on website of University of Southern California. One such article is called "Circuit Breakers and Trading Limits: What have we learned?".
A circuit breaker in electrical engineering is an electrical switch designed to protect the circuit from overload.
A circuit breaker in the stock market is a curb on trading when the market drops substantially in value. The NYSE implemented circuit breakers after "Black Monday" in 1987 ("Black Monday" has also been applied to the Monday following the 1929 stock market crash).
Wednesday, 26 August 2009
Saturday, 15 August 2009
First Asia-Pacific Exchange-Backed Dark Pool
Dark pools are electronic trading systems which allow large blocks of shares to be traded anonymously. SGX and Chi-X have teamed up to launch the dark pool. SGX listed stocks are to be cleared through the Central Depository. SGX was formed in 1999 from the merger of SES and SIMEX.
Monday, 3 August 2009
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