You are previewing An Introduction to Trading In the Financial Markets: Technology: Systems, Data, and Networks.
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An Introduction to Trading In the Financial Markets: Technology: Systems, Data, and Networks

Book Description

Networks, systems, and data join the financial markets into a single interrelated environment that processes millions of transactions in real time.  This volume, the third of four, investigates the interconnected nature of financial markets by examining networks, systems, and data in turn.  Describing what technologies do instead of how they work, the book shows how they drive each step of the trading process.  We learn why the speed and scope of financial automation are growing, and we observe the increasing importance of data in the regulatory process.  Contributing to these explanations are visual cues that guide readers through the material.  If knowledge comes from information, then this volume reveals much about the core of the finance industry.


  • Explains how technologies and data make the financial markets one of the most automated industries

  • Describes how each step in the trading process employs technology and generates information

  • Presents major concepts with graphs and easily understood definitions

Table of Contents

  1. Cover image
  2. Title page
  3. Table of Contents
  4. Copyright
  5. Preface for the Set
    1. Features of the books
    2. Acknowledgments
  6. Preface
  7. Overview
    1. Taxonomy of markets
    2. Entities
    3. Instruments
    4. Functions
    5. Investing and trading
    6. Processes
    7. Global markets
  8. Background
    1. History
    2. Concepts
  9. Visual Glossary
    1. Preface
    2. Overview
    3. Background
    4. Part 1: systems
    5. Part 2: data
    6. Part 3: networks
    7. Part 4: trading process
  10. Part 1: Systems
    1. Introduction
    2. 1. Purposes
      1. Display and presentation
      2. Analysis and decision making
      3. Measurement and comparison
      4. Workflow management
      5. Database management
      6. Inventory control
      7. Accounting
      8. Reporting
    3. 2. Functions
      1. Buy side
      2. Sell side
    4. 3. Tasks
      1. Entering
      2. Updating
      3. Posting
      4. Reconciling
      5. Presenting
    5. 4. Events
      1. Accounts
      2. Instruments
    6. 5. Organization
      1. Related information in other books
  11. Part 2: Data
    1. Introduction
    2. 1. Types
      1. Process data
      2. Reference data
      3. Market data
      4. Identifiers and segments
    3. 2. Characteristics
      1. Freshness
      2. State
    4. 3. Sources
      1. Trading venues
      2. Issuing companies
      3. Instrument registration
      4. The sell side
      5. The buy side
      6. Vendors
      7. Regulators and governments
    5. 4. Purpose
      1. Trading
      2. Accounting and reporting
      3. Risk management and compliance
      4. Regulation and oversight
    6. 5. Functions
      1. Buy side
      2. The sell side
    7. 6. Business
      1. Tasks
      2. Groups
      3. Ownership
      4. Pricing
      5. Distribution
    8. 7. Management
      1. Acquisition
      2. Normalization
      3. Quality control
      4. Database
      5. Entitlements
      6. Inventory control
      7. Cost control
      8. Reporting
      9. Governance
    9. 8. Organization
      1. Tasks
      2. Technology
      3. Business and accounting
      4. Sales and marketing
      5. Operations and maintenance
    10. 9. Issues
      1. Speed
      2. Units of count
      3. Multiple entitlements/single user
      4. Standards
      5. Inconsistencies and conflicts
      6. Metadata
      7. Volume
      8. Official prices
      9. Ownership and contract problems
      10. Related information in other books
  12. Part 3: Networks
    1. Introduction
    2. 1. Concepts
      1. Latency
      2. Queuing
      3. Architecture
      4. Distribution techniques
      5. Design
      6. OSI layers
      7. Standards
    3. 2. Span
      1. Internal
      2. Interentity
    4. 3. Distribution Technology
      1. Telecommunications
      2. Cellular
      3. Internet
      4. Satellite
    5. 4. Types
      1. Telephone and verbal messaging
      2. Market-data networks
      3. Advertising
      4. Trading networks
      5. Post-trade networks
      6. Payments networks
      7. Email and text messaging
      8. Video networks
    6. 5. Organization
    7. 6. Issues
      1. Message traffic
      2. Capacity planning
      3. Related information in other books
  13. Part 4: Trading Process
    1. Introduction
    2. 1. Step 1: Pre-trade Decisions
      1. Processes
      2. Outputs
      3. Summary
    3. Step 2: Buy-Side Trading
      1. Processes
      2. Outputs
      3. Summary
    4. 3. Step 3: Order Routing
      1. Processes
      2. Outputs
      3. Summary
    5. 4. Step 4: Execution
      1. Processes
      2. Outputs
      3. Summary
    6. 5. Step 5: Trade Confirmation
      1. Processes
      2. Outputs
      3. Summary
    7. 6. Step 6: Trade Allocation
      1. Processes
      2. Outputs
      3. Summary
    8. 7. Step 7: Clearing
      1. Processes
      2. Outputs
      3. Summary
    9. 8. Step 8: Settlement
      1. Processes
      2. Outputs
      3. Summary
      4. Related information in other books
    10. Conclusion
      1. Book 1: an introduction to trading in the financial markets: market basics
      2. Book 2: an introduction to trading in the financial markets: trading, markets, instruments, and processes
      3. Book 4: an introduction to trading in the financial markets: global markets, regulation, risk, and compliance
  14. Glossary
  15. References
  16. Index