Table of Contents




Chapter 1. Introduction to Securities Trading and Markets

1.1 Trades, Traders, Securities, and Markets

1.2 Securities Trading

1.3 Bargaining

1.4 Auctions

1.5 Introduction to Market Microstructure

1.6 Orders, Liquidity, and Depth

1.7 Day Trading

Additional Reading


1.8 Exercises

Chapter 2. Financial Markets, Trading Processes, and Instruments

2.1 Exchanges and Floor Markets

2.2 The Way It Was

2.3 Over-the-Counter Markets and Alternative Trading Systems

2.4 The Decline of Brick and Mortar

2.5 Crossing Networks and Upstairs Markets

2.6 Quotation, Intermarket, and Clearing Systems

2.7 Brokerage Operations

2.8 Fixed-Income Securities and Money Markets

2.9 Markets around the World

2.10 Currency Exchange and Markets

Additional Reading


2.11 Exercises

Chapter 3. Institutional Trading

3.1 Institutions and Market Impact

3.2 Registered Investment Companies

3.3 Unregistered Investment Companies

3.4 Best Execution, Execution Costs, And Price Improvement

3.5 Algorithmic Trading

3.6 Dark Pools

3.7 Stealth And Sunshine Trading

3.8 High-Frequency Trading

3.9 Flash Trading And Sponsored Access

Additional Reading


3.10 Exercises

Chapter 4. Regulation of Trading and Securities Markets

4.1 Background and Early Regulation

4.2 U.S. Securities Market Legislation: The Foundation

4.3 Crises and Updating the Regulatory System

4.4 Deregulation, Corporate Scandals, and the Financial Crisis of 2008

4.5 Dodd-Frank

4.6 Government Oversight of Self-Regulation: The Securities and Exchange Commission and Commodity Futures Trading Commission

4.7 Impact of R


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© 2013
Academic Press
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About the author

John Teall

John Teall is a visiting professor at LUISS Business School in Rome, Italy. He is a former member of the American Stock Exchange and has served as a consultant to Deutsche Bank, Goldman Sachs, and other financial institutions.

Affiliations and Expertise

Rensselaer Polytechnic Institute, Troy, NY, USA


"Teall’s Financial Trading and Investing presents clear and up-to-date coverage of trading and market microstructure. Arbitrage and hedging examples in currency, forwards, fixed income and options markets are well developed, with particular attention devoted to implementing transactions."--Ahmet K. Karagozoglu, Hofstra University

"I enjoyed reading the material in Financial Trading and Investing. Dr. Teall’s coverage of the content in this text is very thorough, and it fills a niche in academic and professional literature on trading and market microstructure."--Travis Jones, Florida Gulf Coast University

"The presentation is well supported not only by the extensive use of professional literature but also by examples in each chapter. The end-of-chapter questions enhance learning by enabling students to apply concepts in meaningful ways. They make the material more ‘real world' for advanced undergraduates or graduate students."--Kevin Klein, Illinois College