Financial Markets

mgest1327  2022-2023  Mons

Financial Markets
5.00 credits
30.0 h + 10.0 h
Q1
Teacher(s)
D'Hondt Catherine;
Language
French
Main themes
  • The main financial assets (from stocks to cryptocurrencies)
  • The different market structures
  • Financial market quality indicators
  • Algorithmic trading and high frequency trading
  • The basics of socially responsible investing (SRI)
Learning outcomes

At the end of this learning unit, the student is able to :

1 Given the « competencies referential » linked to the LSM Bachelor in Management and Business Engineering, this course mainly develops the following competencies:
  • 1.1. Demonstrate the ability to reason independently and adopt a considered and critical approach to knowledge (academic and common sense).
  • 2.2. Acquire a knowledge base in human science and law.
  • 2.4. Apply knowledge gained from different subjects to solve a simple but concrete management problem.
  • 3.1. Understand and selectively use scientific texts and works in French and English.
  • 3.2. Apply clear and structured analytical reasoning, conceptual frameworks and science-based models to describe and analyse a simple but concrete problem and offer a solution.
  • 5.2. Understand these workings, place them in their socio-economic context and identify the interdisciplinary issues.
  • 6.1. Know and understand the principles of collaborative learning.
  • 8.1. With the target audience in mind, communicate information, ideas, solutions and conclusions with written and oral fluency and in a clear, structured and well-argued manner.
At the end of the class, the student will be able to:
  • explain the key characteristics of major financial assets (from stocks to cryptocurrencies)
  • explain how a financial market works
  • explain the challenges related to liquidity & efficiency
  • define liquidity measures and be able to calculate them
  • evaluate and apply basic execution strategies
  • explain and analyze the impact of digitalization on the functioning of financial markets
  • explain the foundations of socially responsible investing (SRI)
  • explain some of the consequences of the rise of SRI on the European regulation of financial markets
 
Content
• Introduction
• Overview of the main financial assets
• Typology of market sctructures
• Indicators of market quality
• Algorithmic trading & High Frequency Trading
• The basics and rise of Socially Responsible Investment
Teaching methods
  • Lectures
  • Sessions of exercices
Evaluation methods
Within this course, students' skills assessment is twofold :
• Ongoing assessment with a mandatory homework to deliver at the end of the semester (25% of the final grade)
• Written exam with open questions in session (75% of the final grade)
The grade of the homework is no longer taken into account in case of second session (resit exam=100% of the grade).
Bibliography
•Foucault T., Pagano M. & Röell A, 2013, “Market Liquidity: Theory, Evidence, and Policy”, Oxford University Press
•Harris L., 2003, “Trading & Exchanges : Market Microstructure for Practitioners”, Oxford University Press
•Giraud JR. & D’Hondt C., 2006, “MiFID: Convergence towards a unified European capital markets industry”, Riskbooks
•Verhelst JL., 2017, “Bitcoin, the Blockchain and Beyond: A 360-Degree onboarding guide to the first cryptocurrency and blockchain”
https://www.wikifin.be/fr
http://www.eurosif.org/
http://www.gsi-alliance.org/
https://www.unpri.org/
https://www.towardssustainability.be/fr
Faculty or entity
CLSM


Programmes / formations proposant cette unité d'enseignement (UE)

Title of the programme
Sigle
Credits
Prerequisites
Learning outcomes
Bachelor in Management