Market Making and the Changing Structure of the Securities
Industry
By Yakov Amihud, Thomas S.Y. Ho, and Robert A. Schwartz
2002/11 - Beard Books
1587981637 - Paperback - Reprint - 332 pp.
US$34.95
This detailed and comprehensive examination of a vital industry is important
reading for traders, financial analysts, and those interested in the development
of financial institutions.
Publisher Comments
In this book, the product of a conference held at New York University's Salomon Center for the Study of Financial Institutions, the industry's leading practitioners and theoreticians addressed the key issues raised by the Securities Acts Amendments of 1975: market design and operations. Experts considered the importance of efficient price discovery as the objective of the trading system and examined the interrelationship between the number of market makers and the liquidity of the market.
Turning their attention to the actual market systems and regulatory structure, they discussed the competitive environment of the markets, provided an in-depth view of arbitrage and upstairs trading, and focused on multiple regulators of the securities industry.
From Amazon.Com:
This is a reprint of a previously published book. it deals with changes on
the U.S. financial market by the Securities Acts Amendment of 1975.

Yakov
Amihud is Ira Leon Rennert Professor of Entrepreneurial Finance of the Stern School of Business, New York University where he has been teaching since 1990, and concurrent holds a research professorship in Finance. He obtained his Bachelor of Social Science degree from Hebrew University (1969); Master of Science in Business Administration from New York University Graduate School of Business Administration (1973) and his Doctor of Philosophy in Business Administration from the same institution in 1975.
Other Beard Books by
Yakov Amihud
Thomas S. Y. Ho is the President of Thomas Ho Company, consultants to major financial institutions on quantitative financial analysis. He founded Global Advance Technology in 1987 which provided 200 financial institutional clients worldwide portfolio analytics. He was a professor at Stern School of Business, NYU from 1978-1989. He has published extensively in academic journals and hold a Ph.D. in Mathematics from the University of Pennsylvania.
Robert A. Schwartz is Marvin M. Speiser Professor of Finance and University Distinguished Professor at the Zicklin School of Business, Baruch College, CUNY. He received his MBA and Ph.D. from Columbia University. Among his numerous publications are The Microstructure of Security Markets: Theory and Implications and Impending Changes for Securities Markets: What Role for Exchanges?

|
List of Figures and Tables |
ix |
|
Foreword William M. Batten |
xi |
|
Acknowledgments |
xiii |
1. |
Overview of the Changing Securities Markets |
1 |
|
Yakov Amihud, Thomas S.Y. Ho and Robert
A. Schwartz |
|
PART I. Issues in
Market Design |
17 |
2. |
Efficient Price Discovery in a Securities Market: The
Objective of a Trading System |
19 |
|
Paul S. Schreiber and Robert A. Schwartz |
|
3. |
Dealer Market Structure and Performance |
41 |
|
Thomas S.Y. Ho and Richard G. Macris |
|
4. |
Alternative Views of Market Making |
67 |
|
Hans R. Stoll |
|
5. |
Order Flow and the Quality of the Market |
93 |
|
Kalman J. Cohen, Robert M. Conroy, and
Steven F. Maier |
|
|
Appendix 5A |
|
|
The Queueing Model with Reneging |
111 |
6. |
The View from the Trading Floor |
113 |
|
Donald Stone |
|
PART II. Market and Regulatory
Structure |
117 |
7. |
An Era of Opportunity and Challenge for the Securities
Industry |
119 |
|
John J. Phelan, Jr. |
|
8. |
The Competitive Environment of the Securities Market |
131 |
|
John T. Wall |
|
|
Appendix 8A |
143 |
9. |
Arbitrage Trading |
145 |
|
Samuel E. Hunter |
|
10. |
Upstairs Trading |
151 |
|
Richard S. Falk |
|
11. |
Multiple Regulators: Their Constituencies and Policies |
155 |
|
Ernest Bloch |
|
|
Appendix 11A |
179 |
12. |
The Securities and Commodities Markets: A Case Study in
Product Convergence and Regulatory Disparity |
183 |
|
Douglass Scarff |
|
|
Appendix 12A |
|
|
Regulation of Opinions and Futures |
193 |
13. |
Regulation and the Futures Markets |
205 |
|
Susan M. Philips |
|
14. |
Reflections on Securities Regulation |
211 |
|
Lawrence J. White |
|
PART III. Trading Systems and
Automation |
215 |
15. |
An Integrated Computerized Trading System |
217 |
|
Yakov Amihud and Haim Mendelson |
|
16. |
An International Comparison of Stock Exchange Trading
Structures |
237 |
|
David K. Whitcomb |
|
17. |
The Evolving National Market System |
257 |
|
Stephen L. Williams |
|
18. |
The Intermarket Trading System and the Cincinnati
Experiment |
269 |
|
Jeffry L. Davis |
|
19. |
Electronic Trading Systems: The User's Point of View |
285 |
|
Roger W. Marshall and Severin C. Carlson |
|
20. |
Can You Get There from Here? |
297 |
|
Seymour Smidt |
|
21. |
Star Wars Technology in Trading |
301 |
|
William A. Lupien |
|
|
Index |
305 |
|
Glossary |
313 |
|
About the Contributors |
315 |
|
About the Editors |
319 |
|