Uncertainty, Unintended Consequences and Everything Else: Study of Recent APAC Market Microstructure Events (Presentation Slides)
31 Pages Posted: 28 Sep 2016 Last revised: 16 Oct 2016
Date Written: September 22, 2016
Abstract
We look at the nature of uncertainty as it relates to people and specifically zoom into the field of finance. Since the events we consider are related to trading venues we consider the motivations for the policy decisions of exchanges. We review the microstructure methodology used for the empirical studies and see how it is suited for this age of (too much) information. Lastly we look at some key results and unintended outcomes regarding the Japan TOPIX 100 tick size changes and the Hong Kong Shanghai Connect, linking the stock exchanges in the two cities.
The Topics of the Discussion: 1. The Nature of Uncertainty; 2. The Venue Menu and How to Increase Revenue; 3. Microstructure under the Microscope; 4. A Tale of Two Consequences; 5. Hong Kong Shanghai Connect/Hong Kong Beijing Disconnect.
Keywords: Uncertainty, Unintended Consequences, Venue, Menu, Revenue, TOPIX, Japan, Tick Size, Changes, Hong Kong, Shanghai, Connect, Trade Tech Asia, 2016, Singapore
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