Outline

Overview

This unit introduces students to the core concepts of fundamental market design and structure, focussing on the processes that turn orders into trades in securities markets, and the forces that mould and effect order flow and execution. The unit provides insights into how the study of securities market microstructure can improve our understanding of today's global financial markets in order to: (a) facilitate better financing and investment decisions; (b) understand when, where and how to transact in financial instruments; and (c) make better use of the ever increasing flow of market information. An improved understanding of today's diverse financial markets allows for successful trading strategies to be developed in different instruments and across many markets, today and in the future.

Unit details and rules

Academic unit	Finance
Credit points	6
Prerequisites ?	FINC5001
Corequisites ?	None
Prohibitions ?	None
Assumed knowledge ?	None
Available to study abroad and exchange students	Yes

Teaching staff

Coordinator	Reuben Segara, reuben.segara@sydney.edu.au
Lecturer(s)	Reuben Segara, reuben.segara@sydney.edu.au

Assessment

The census date for this unit availability is 31 March 2025

Details
Criteria

Type	Description	Weight	Due	Length
Supervised exam ?	Final exam Extended response questions Closed book exam	50%	Formal exam period	2 hours
Outcomes assessed:
Supervised test ?	In-semester exam Multiple-choice questions Closed book exam	30%	Week 07 Due date: 13 Apr 2025 at 15:40	80 minutes
Outcomes assessed:
Assignment	Analyzing and Developing Trading Ideas in Today's Global Market Develop three actionable trading ideas based on current market conditions	20%	Week 12 Due date: 20 May 2025 at 23:59 Closing date: 03 Jun 2025	Up to 8 A4 pages (excluding appendices)
Outcomes assessed:
= group assignment ?

Assessment summary

Trading assignment: In groups, students will apply their knowledge of financial markets and trading strategies to generate three actionable trading ideas based on the current global market conditions. Through research and analysis, you will identify opportunities and develop critical thinking and decision-making skills essential for successful trading. Part of the weighted assessment for the trading assignment will include individual student's individual attendance and participation in class needed to gain cumulative knowledge necessary to generate trading ideas for this assignment.

Mid-semester exam: The mid-term exam will consist of multiple-choice questions (MCQs). This exam will cover all topics covered up to the exam date (Weeks 1 to 6), including both lecture notes and tutorial content. No reference materials/resources permitted. Feedback will be provided on your MCQ results after the closing date.
Final exam: The final exam will consist of extended responses covering the entirety of the unit. No reference materials/resources permitted.

Detailed information for each assessment will be provided on Canvas.

Assessment criteria

The University awards common result grades, set out in the Coursework Policy 2014 (Schedule 1).

As a general guide, a high distinction indicates work of an exceptional standard, a distinction a very high standard, a credit a good standard, and a pass an acceptable standard.

Result name	Mark range	Description
High distinction	85 - 100	Awarded when you demonstrate the learning outcomes for the unit at an exceptional standard, as defined by grade descriptors or exemplars outlined by your faculty or school.
Distinction	75 - 84	Awarded when you demonstrate the learning outcomes for the unit at a very high standard, as defined by grade descriptors or exemplars outlined by your faculty or school.
Credit	65 - 74	Awarded when you demonstrate the learning outcomes for the unit at a good standard, as defined by grade descriptors or exemplars outlined by your faculty or school.
Pass	50 - 64	Awarded when you demonstrate the learning outcomes for the unit at an acceptable standard, as defined by grade descriptors or exemplars outlined by your faculty or school.
Fail	0 - 49	When you don’t meet the learning outcomes of the unit to a satisfactory standard.

For more information see guide to grades.

Use of generative artificial intelligence (AI) and automated writing tools

Except for supervised exams or in-semester tests, you may use generative AI and automated writing tools in assessments unless expressly prohibited by your unit coordinator.

For exams and in-semester tests, the use of AI and automated writing tools is not allowed unless expressly permitted in the assessment instructions.

The icons in the assessment table above indicate whether AI is allowed – whether full AI, or only some AI (the latter is referred to as “AI restricted”). If no icon is shown, AI use is not permitted at all for the task. Refer to Canvas for full instructions on assessment tasks for this unit.

Your final submission must be your own, original work. You must acknowledge any use of automated writing tools or generative AI, and any material generated that you include in your final submission must be properly referenced. You may be required to submit generative AI inputs and outputs that you used during your assessment process, or drafts of your original work. Inappropriate use of generative AI is considered a breach of the Academic Integrity Policy and penalties may apply.

The Current Students website provides information on artificial intelligence in assessments. For help on how to correctly acknowledge the use of AI, please refer to the  AI in Education Canvas site.

Late submission

In accordance with University policy, these penalties apply when written work is submitted after 11:59pm on the due date:

Deduction of 5% of the maximum mark for each calendar day after the due date.
After ten calendar days late, a mark of zero will be awarded.

Academic integrity

The Current Student website provides information on academic integrity and the resources available to all students. The University expects students and staff to act ethically and honestly and will treat all allegations of academic integrity breaches seriously.

We use similarity detection software to detect potential instances of plagiarism or other forms of academic integrity breach. If such matches indicate evidence of plagiarism or other forms of academic integrity breaches, your teacher is required to report your work for further investigation.

Learning support

Simple extensions

If you encounter a problem submitting your work on time, you may be able to apply for an extension of five calendar days through a simple extension.  The application process will be different depending on the type of assessment and extensions cannot be granted for some assessment types like exams.

Special consideration

If exceptional circumstances mean you can’t complete an assessment, you need consideration for a longer period of time, or if you have essential commitments which impact your performance in an assessment, you may be eligible for special consideration or special arrangements.

Special consideration applications will not be affected by a simple extension application.

Using AI responsibly

Co-created with students, AI in Education includes lots of helpful examples of how students use generative AI tools to support their learning. It explains how generative AI works, the different tools available and how to use them responsibly and productively.

Support for students

The Support for Students Policy 2023 reflects the University’s commitment to supporting students in their academic journey and making the University safe for students. It is important that you read and understand this policy so that you are familiar with the range of support services available to you and understand how to engage with them.

The University uses email as its primary source of communication with students who need support under the Support for Students Policy 2023. Make sure you check your University email regularly and respond to any communications received from the University.

Learning resources and detailed information about weekly assessment and learning activities can be accessed via Canvas. It is essential that you visit your unit of study Canvas site to ensure you are up to date with all of your tasks.

If you are having difficulties completing your studies, or are feeling unsure about your progress, we are here to help. You can access the support services offered by the University at any time:

Support and Services (including health and wellbeing services, financial support and learning support)
Course planning and administration
Meet with an Academic Adviser

Weekly schedule

WK	Topic	Learning activity
Week 01	Lecture: Trading basics Tutorial: "Getting to know the class" & Trading basics (Part I); Consultation	Lecture and tutorial (3 hr)
Week 02	Lecture: The trading industry: Market participants, trading instruments, and market structure Tutorial: Trading basics (Part 2); Consultation	Lecture and tutorial (3 hr)
Week 03	Lecture: Large traders, market impact costs and methods to assess institutional trade execution Tutorial: The trading industry: Market participants, trading instruments and market structure; Consultation	Lecture and tutorial (3 hr)
Week 04	Lecture: Dealers, their costs and how they manage their risks Tutorial: Large traders, market impact costs and methods to assess institutional trade execution; Consultation	Lecture and tutorial (3 hr)
Week 05	Lecture: How do investors behave? Tutorial: Dealers, their costs and how they manage their risks; Consultation	Lecture and tutorial (3 hr)
Week 06	Lecture: What do we want from markets? Tutorial: How do investors behave?	Lecture and tutorial (3 hr)
Week 07	Lecture: Unlocking the crypto craze: Why everyone's talking about digital gold Tutorial: What do we want from markets?; Consultation	Lecture and tutorial (3 hr)
Week 08	Mid-semester exam (Tutorials will be held, where Assignment assistance will be provided)	Lecture and tutorial (3 hr)
Week 09	Lecture: Arbitrage Tutorial: What is Cryptocurrency and Why All the Hype?; Consultation	Lecture and tutorial (3 hr)
Week 10	Lecture: What's been happening in markets? Algo trading Tutorial: Arbitrage; Consultation	Lecture and tutorial (3 hr)
Week 11	Lecture: Distressed markets and what do we do with them? Dark trading; Predatory HFT; Speed bumps Tutorial: What's been happening in markets? Consolidation vs. Fragmentation; Algo trading; Consultation	Lecture and tutorial (3 hr)
Week 12	Lecture: Market dislocations: Market manipulation; Insider trading Tutorial: Distressed markets and what do we do with them? Dark trading; Predatory HFT; Speed bumps	Lecture and tutorial (3 hr)
Week 13	Lecture: Review lecture Tutorial: Market dislocations: Market manipulation; Insider trading; Consultation	Lecture and tutorial (3 hr)

Attendance and class requirements

Lecture recordings: All lectures and seminars are recorded and will be available on Canvas for student use. Please note the Business School does not own the system and cannot guarantee that the system will operate or that every class will be recorded. Students should ensure they attend and participate in all classes.

Study commitment

Typically, there is a minimum expectation of 1.5-2 hours of student effort per week per credit point for units of study offered over a full semester. For a 6 credit point unit, this equates to roughly 120-150 hours of student effort in total.

Required readings

All readings for this unit can be accessed through the Library eReserve, available on Canvas.

Prescribed textbook: John L. Teall, Financial Trading and Investing, 2022 (3rd Ed), Academic Press, Elsevier Inc., ISBN 9780323909556
Recommended textbook: Thierry Foucault, Marco Pagano, and Ailsa Röell, Market Liquidity: Theory, Evidence, and Policy, 2023 (2nd ed), Oxford University Press ISBN: 9780197542064

Note: Required readings for both these textbooks will be provided on the CANVAS site (week by week). It is strongly suggested that you read the required reading before each lecture and before tutorials.

Learning outcomes

Learning outcomes are what students know, understand and are able to do on completion of a unit of study. They are aligned with the University's graduate qualities and are assessed as part of the curriculum.

Outcomes
Graduate qualities

At the completion of this unit, you should be able to:

LO1. apply theory from financial economics to better understand today's global financial markets
LO2. identify relevant market information that will help to make investment and trading decisions
LO3. decide when, where and how to transact in financial instruments; and how to use the ever increasing flow of market information to improve the accuracy of these trading decisions
LO4. communicate trading problems and possible solutions

Graduate qualities

The graduate qualities are the qualities and skills that all University of Sydney graduates must demonstrate on successful completion of an award course. As a future Sydney graduate, the set of qualities have been designed to equip you for the contemporary world.

GQ1	Depth of disciplinary expertise Deep disciplinary expertise is the ability to integrate and rigorously apply knowledge, understanding and skills of a recognised discipline defined by scholarly activity, as well as familiarity with evolving practice of the discipline.
GQ2	Critical thinking and problem solving Critical thinking and problem solving are the questioning of ideas, evidence and assumptions in order to propose and evaluate hypotheses or alternative arguments before formulating a conclusion or a solution to an identified problem.
GQ3	Oral and written communication Effective communication, in both oral and written form, is the clear exchange of meaning in a manner that is appropriate to audience and context.
GQ4	Information and digital literacy Information and digital literacy is the ability to locate, interpret, evaluate, manage, adapt, integrate, create and convey information using appropriate resources, tools and strategies.
GQ5	Inventiveness Generating novel ideas and solutions.
GQ6	Cultural competence Cultural Competence is the ability to actively, ethically, respectfully, and successfully engage across and between cultures. In the Australian context, this includes and celebrates Aboriginal and Torres Strait Islander cultures, knowledge systems, and a mature understanding of contemporary issues.
GQ7	Interdisciplinary effectiveness Interdisciplinary effectiveness is the integration and synthesis of multiple viewpoints and practices, working effectively across disciplinary boundaries.
GQ8	Integrated professional, ethical, and personal identity An integrated professional, ethical and personal identity is understanding the interaction between one’s personal and professional selves in an ethical context.
GQ9	Influence Engaging others in a process, idea or vision.

Outcome map

Learning outcomes	Graduate qualities
Learning outcomes

Responding to student feedback

This section outlines changes made to this unit following staff and student reviews.

All lecture/tutorial material has been carefully curated to incorporate the latest relevant market events. Student feedback has been enhanced, where student queries are responded within 1-2 business days.

Additional information

Work, health and safety

WHS Guidelines for Students with COVID-19

In order to ensure the health and safety of all students, staff, and the wider university community, the following guidelines must be followed by any student who has tested positive for COVID-19:

Stay Home
If you have tested positive for COVID-19, you must not attend lectures, tutorials, or any on-campus activities. It is important to stay at home to prevent the spread of the virus to others.
Self-Isolate
Follow the latest public health advice regarding self-isolation. You should remain isolated from others for the duration of your contagious period, as specified by local health guidelines or your healthcare provider.
Notify Your Instructor
Inform your course instructors or the relevant academic staff about your COVID-19 diagnosis as soon as possible.
Access Online Resources
Where possible, access your lectures and tutorials remotely via online platforms. Check with your instructor or course coordinator for specific instructions on how to participate in classes virtually.
Health and Wellbeing Support
If you feel unwell or need mental health support, reach out to the student health service or wellbeing services available at your university. They can provide assistance or direct you to appropriate resources.
Return to Campus
You should only return to campus when you have fully recovered and are no longer contagious. Follow any return-to-campus guidelines provided by your university, which may include a negative COVID-19 test or confirmation from a healthcare provider that you are fit to return.
Adhere to Health Protocols
Continue to follow all general health protocols, including wearing masks, maintaining physical distancing, and practicing good hygiene, as required by your university or local public health authorities.
Stay Informed
Stay updated on any changes to university guidelines or public health advice regarding COVID-19. Ensure that you are following the latest information for the safety of everyone on campus.

By following these guidelines, you are helping to protect your peers, instructors, and the broader university community. Your cooperation is greatly appreciated.

Disclaimer

The University reserves the right to amend units of study or no longer offer certain units, including where there are low enrolment numbers.

To help you understand common terms that we use at the University, we offer an online glossary.

Current students

Overview

Overview

Unit details and rules

Teaching staff

Assessment

Assessment

Assessment summary

Assessment criteria

Use of generative artificial intelligence (AI) and automated writing tools

Late submission

Academic integrity

Learning support

Learning support

Simple extensions

Special consideration

Using AI responsibly

Support for students

Weekly schedule

Weekly schedule

Attendance and class requirements

Study commitment

Required readings

Learning outcomes

Learning outcomes

Graduate qualities

Outcome map

Responding to student feedback

Responding to student feedback

Additional information

Additional information

Work, health and safety

Disclaimer

On this page

Useful links

Media

Student links

About us

Connect

Current students

FINC6015: Trading in Modern Financial Markets

Semester 1, 2025 [Normal day] - Camperdown/Darlington, Sydney

Overview

Overview

Unit details and rules

Teaching staff

Assessment

Assessment

Assessment summary

Assessment criteria

Use of generative artificial intelligence (AI) and automated writing tools

Late submission

Academic integrity

Learning support

Learning support

Simple extensions

Special consideration

Using AI responsibly

Support for students

Weekly schedule

Weekly schedule

Attendance and class requirements

Study commitment

Required readings

Learning outcomes

Learning outcomes

Graduate qualities

Outcome map

Responding to student feedback

Responding to student feedback

Additional information

Additional information

Work, health and safety

Disclaimer

On this page

Useful links

Media

Student links

About us

Connect