Trading and Electronic Markets

Trading and Electronic Markets was published in 2015 by the CFA Institute Research Foundation as a foundational text for financial professionals and students. Authored by Larry Harris, a professor of finance at the USC Marshall School of Business and former chief economist of the U.S. Securities and Exchange Commission, the work was commissioned to provide a comprehensive, rigorous examination of how modern market structures influence the cost and quality of trading. It serves as an essential bridge between academic market microstructure theory and the practical realities of institutional electronic trading.

The book is celebrated for its clarity in navigating the complex transition from traditional floor-based exchanges to decentralized electronic venues. Harris focuses on the economic motives of traders, the role of market intermediaries, and the impact of regulatory frameworks on market liquidity and transparency. Upon its release, it was widely adopted as a primary reference within the finance industry and by academic programs, earning a reputation as a standard text for those seeking to understand the mechanics and incentive structures of contemporary global financial exchanges.